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Thu. Feb 12th, 2026
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Thu. Feb 12th, 2026

RBI imposes ₹1.61 cr. penalty on Indian Bank, ₹63.60 lakh on IOB

RBI imposes ₹1.61 cr. penalty on Indian Bank, ₹63.60 lakh on IOB


Indian Overseas Bank (IOB).

Indian Overseas Bank (IOB).
| Photo Credit: Raghunathan SR

The Reserve Bank of India (RBI) has imposed a penalty of more than ₹1.61 crore on Indian Bank and ₹63.60 lakh on Indian Overseas Bank for non-compliance with certain directions it had issued.

The ₹1,61,40,000 penalty on Indian Bank is for non transfer of eligible amount to Depositor Education and Awareness Fund within the prescribed period and non-compliance with certain directions issued by RBI on interest rate on advances; Kisan Credit Card Scheme; and lending to MSME sector. In a filing on the penalty, Indian Bank said it has taken necessary preventive actions to avoid recurrence.

Indian Overseas Bank, also in a filing, said the penalty of ₹63.60 lakh imposed by RBI is for non-compliance with certain directions issued by the central bank on credit flow to agriculture- collateral free agricultural loans and lending to MSME sector.

Published – April 26, 2025 10:42 pm IST



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