RBI Levies Rs 31.8 Lakh Penalty on Indian Overseas Bank Over PSL Compliance
The Reserve Bank of India has imposed a Rs 31.8 lakh penalty on Indian Overseas Bank for failing to meet priority sector lending targets. The bank collected charges on certain PSL accounts, which led to the penalty after a series of findings and submissions.
- Country:
- India
The Reserve Bank of India (RBI) has imposed a penalty of Rs 31.8 lakh on Indian Overseas Bank due to non-compliance with its directives regarding 'Priority Sector Lending (PSL) – Targets and Classification'.
The penalty follows an investigation and subsequent show cause notice issued to the bank after supervisory findings revealed discrepancies in compliance.
Despite the bank's responses to the notice and additional submissions during personal hearings, the RBI determined that the breaches warranted a financial penalty. The RBI emphasized that the penalty reflects regulatory compliance shortcomings and does not question the validity of the bank's transactions with customers.
(With inputs from agencies.)
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