The Reserve Bank of India (RBI) has levied a monetary penalty of ₹31.80 Lakhs on Indian Overseas Bank (IOB). This penalty stems from non-compliance issues related to loan-related charges in certain Priority Sector Lending (PSL) accounts. The matter was identified during a Statutory Inspection for Supervisory Evaluation (ISE) conducted by the RBI.
Monetary Penalty Details
Indian Overseas Bank (IOB) has been subjected to a monetary penalty of ₹31.80 Lakhs by the Reserve Bank of India (RBI). This action was taken following the Statutory Inspection for Supervisory Evaluation (ISE) for the year 2024.
Reason for the Penalty
The penalty is a result of the bank’s actions related to the loan-related charges collected on certain Priority Sector Lending (PSL) accounts. These accounts each had a sanctioned loan amount up to ₹25,000.
RBI’s Authority
The penalty was imposed by the RBI in exercise of powers conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and 51(1) of Banking Regulation Act, 1949.
Date of Communication
IOB received communication from the RBI regarding this penalty on 30.09.2025.
Financial Impact
The bank has reported that there is no quantifiable impact on the financial, operational, or other activities of the listed entity. The monetary impact is stated as NIL.
Source: BSE
