The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1,61,40,000 (Rupees One crore sixty one lakh forty thousand only) on Indian Bank for contravention of provisions of Section 26A of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on Interest Rate on Advances, Kisan Credit Card (KCC) Scheme and Lending to Micro, Small and Medium Enterprises (MSME) Sector.
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| RBI Imposes Rs 1.61 Crore Penalty on Indian Bank |
RBI Imposes ₹1.61 Crore Penalty on Indian Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,61,40,000 on Indian Bank for contravention of provisions of Section 26A of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on Interest Rate on Advances, Kisan Credit Card (KCC) Scheme and Lending to Micro, Small and Medium Enterprises (MSME) Sector.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the BR Act.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on Indian Overseas Bank.
RBI Imposes Penalty on Indian Bank: Background
The statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank failed to benchmark the interest rate on certain floating rate retail loans and loans to certain Micro, Small and Medium Enterprises to an external benchmark rate.
- The bank had obtained collateral security in respect of certain KCC loans upto ₹1.6 lakh and certain loans to Micro and Small Enterprises upto ₹10 lakh.
- The bank did not transfer an eligible amount to the Depositor Education and Awareness Fund within the prescribed period.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
About Indian Bank
Indian Bank was established on March 5, 1907 with an authorized capital of Rs 20 lakh and commenced its business on August 15, 1907.
In the year 1907, the Indian Bank Ltd. had the tree ‘Banyan’ as a part of its emblem denoting an all-around progress, growth (far and wide) and an ever-increasing prosperity.
Indian Bank Vision And Mission
Vision: Delivering excellence in financial services through customer focus, employee engagement and sustainable growth.
Mission:
- Bring the best of innovation and technology in our offerings
- Be responsive to the unique needs of every customer through all channels of choice
- To provide value to stakeholders
- Empower and engage our employees
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Indian Bank for upcoming exams
- Formation: 15 August 1907
- Founder: S. Rm. M. Ramaswami Chettiar
- Headquarters: Chennai, India
- Managing Director & CEO: Binod Kumar
- Number of Branches: 5,880 Branches
- Number of ATMs: 4,937 ATMs
- Number of employees: 40,251(2024)
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