The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 31.80 lakh (Rupees Thirty One Lakh Eighty Thousand only) on Indian Overseas Bank for non-compliance with certain directions issued by RBI on ‘Priority Sector Lending (PSL) – Targets and Classification’. The Indian Overseas Bank (IOB) collected loan related charges in certain PSL accounts, each having sanctioned loan amount up to ₹25,000/, thereby violating the norms and hence RBI has imposed a penalty of Rs 31.80 lakh on the bank.
 |
| RBI Imposes Rs 31.8 lakh Penalty on Indian Overseas Bank |
RBI Imposes ₹31.8 lakh Penalty on Indian Overseas Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹31.80 lakh on Indian Overseas Bank for non-compliance with certain directions issued by RBI on ‘Priority Sector Lending (PSL) – Targets and Classification’.
Read Also: RBI Imposes Rs 1 lakh Penalty on Panchsheel Mercantile Co-operative Bank
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.
RBI Imposes Penalty on Indian Overseas Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the bank was sustained, warranting imposition of monetary penalty:
- The Indian Overseas Bank collected loan related charges in certain PSL accounts, each having sanctioned loan amount upto ₹25,000/.
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.
Read Also: RBI Imposes Rs 1 lakh Penalty on Sultan’s Battery Co-operative Urban Bank
About Indian Overseas Bank (IOB)
The Indian Overseas Bank (IOB) was founded on 10th February 1937 by M.Ct.M. Chidambaram Chettyar. The headquarters of the bank is located in Chennai, Tamil Nadu. The Bank was founded by him with the main objective of specializing in foreign exchange business in banking to take the Bank across the globe.
Indian Overseas Bank started business simultaneously - at Karaikudi, Chennai and Rangoon in Burma (presently Myanmar) followed by a branch in Penang, Malaysia.
Read Also: RBI Imposes Rs 1 lakh Penalty on Kamaraj Co-operative Town Bank
At the time of independence, IOB had 38 branches in India and 7 abroad – with deposits of Rs 6.64 crore and advances of Rs 3.23 crore.
IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70 Crore and Advances of Rs.44.90 Crore.
Indian Overseas Bank Presently has its Overseas Presence in 4 Countries Singapore, Hongkong, Thailand and Srilanka.
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.
Read Also: RBI signs Currency Swap Agreement with Maldives Monetary Authority
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
Read Also: RBI appoints Aviral Jain as new Executive Director
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: 10th February 1937
- Founder: M.Ct.M. Chidambaram Chettyar
- Headquarters: Chennai, Tamil Nadu
- Chairman: Srinivasan Sridhar
- Managing Director & CEO: Ajay Kumar Srivastava
- Executive Director: Joydeep Dutta Roy & T. Dhanaraj
- Govt. Nominee Director: Neelam Agrawal
- RBI Nominee Director: Sonali Sen Gupta
- Shareholder Director: Sanjaya Rastogi
- Director: Suresh Kumar Rungta, B. Chandra Reddy and Deepak Sharma
0 Comments