PNB slapped with Rs 50 lakh fine for delay in reporting fraud

Action for delaying reporting fraud in Kingfisher Airlines account

The Punjab National Bank in January alleged that diamond jeweller Nirav Modi and his relatives had for years fraudulently raised billions of dollars in foreign credit by conspiring with the bank staff | Reuters Representative image | Reuters

State-owned Punjab National Bank (PNB) on Saturday said the RBI has imposed a penalty of Rs 50 lakh on it for delay in reporting of fraud in the account of Kingfisher Airlines. "RBI observed from the fraud monitoring report-1 submitted by Punjab National Bank on July, 10 2018 that the bank had delayed the reporting of fraud in the account of Kingfisher Airlines Limited," PNB said in a regulatory filing.

In exercise of the powers conferred under various sections of the Banking Regulation Act, 1949, a penalty of Rs 50 lakh was imposed by the RBI on the bank, it added. 

In a separate filing, Bank of Baroda said the RBI has imposed a fine of Rs 50 lakh on it for delay in reporting fraud in an account.