The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 63.60 lakh (Rupees Sixty three lakh sixty thousand only) on Indian Overseas Bank for non-compliance with certain directions issued by RBI on Credit Flow to Agriculture - Collateral free agricultural loans and Lending to Micro, Small & Medium Enterprises (MSME) Sector.
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| RBI Imposes Rs 63.6 lakh Penalty on Indian Overseas Bank |
RBI Imposes ₹63.6 lakh Penalty on Indian Overseas Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹63.60 lakh on Indian Overseas Bank for non-compliance with certain directions issued by RBI on Credit Flow to Agriculture - Collateral free agricultural loans and Lending to Micro, Small & 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 Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.61 Crore on Indian Bank.
RBI Imposes Penalty on Indian Overseas 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, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank had obtained collateral security for agricultural loans up to ₹1.60 lakh in certain cases and
- The bank had obtained collateral security for loans up to ₹10 lakh extended to certain Micro and Small Enterprises (MSEs).
The 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 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 Overseas Bank for upcoming exams
- Formation: 10 February 1937
- Founder: M. Ct. M. Chidambaram Chettiar
- Headquarters: Chennai, Tamil Nadu
- Number of locations: 3269
- Managing Director & CEO: Ajay Kumar Srivastava
- Number of employees: 21,475 (2024)
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