Context:
The Reserve Bank of India (RBI) has imposed a monetary penalty of over ₹1.61 crore on Indian Bank and ₹63.60 lakh on Indian Overseas Bank (IOB) for non-compliance with its regulatory directions.
Details of Non-Compliance
- Indian Bank:
- Failed to transfer eligible amounts to the Depositor Education and Awareness Fund (DEAF) within the stipulated timeframe.
- Non-compliance with RBI norms related to:
- Interest rate on advances
- Kisan Credit Card (KCC) Scheme
- Lending to the Micro, Small and Medium Enterprises (MSME) sector
- Indian Overseas Bank (IOB):
- Specific reasons for the penalty were not detailed, but it pertains to breaches of certain regulatory requirements.
Bank’s Response:
- Indian Bank, in a regulatory filing, stated that it has implemented corrective actions to prevent recurrence of such lapses.
Significance:
- The penalties underscore the RBI’s focus on ensuring strict regulatory compliance across the banking sector, especially in areas impacting customer rights and priority sector lending.
