The Reserve Bank of India has imposed a monetary penalty of Rs 1.31 crore on Punjab National Bank for not complying with the KYC norms and loan directions. The penalty comes after a statutory inspection conducted by RBI on the bank's financial position as of March 2022. PNB has been found to have sanctioned working capital loans to state government-owned corporations against funds receivable from the government, which is in violation of regulations. The bank has been issued a notice and has responded to it.