The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 58,50,000/- (Fifty-Eight Lakh Fifty Thousand Only) on Bank of India. This action stems from non-compliance concerning the collection of ad-hoc service charges on PSL accounts and failing to pay the applicable interest rate on matured Term Deposits (TDRs). The bank confirmed that this penalty will have no material impact on its financial operations or other business activities.
Regulatory Action Against Bank of India
Bank of India has been directed to pay a monetary penalty totaling Rs. 58,50,000/- following an action taken by the Reserve Bank of India (RBI). The disclosure, dated March 27, 2026, confirms receipt of the communication on the same date.
Details of Non-Compliance
The penalty was imposed due to specific instances of contravention identified by the central bank. These included:
- Imposition of a penalty for collecting ad-hoc service charges/inspection charges/processing charges in Priority Sector Lending (PSL) accounts, with charges reaching up to Rs. 25,000/-.
- Failure to pay the applicable rate of interest on Term Deposits (TDRs) for the period starting from the date of maturity until the date of actual encashment of such TDRs.
Financial Impact Assessment
The bank has formally stated that the monetary penalty levied by the RBI is not expected to cause any material disruption or impact on the financial operation or other activities of Bank of India.
The official disclosure was submitted by Usha Ramsinghani, Company Secretary, under the authority of the Bank of India Investor Relations Department.
Source: BSE
