India, April 25 -- The Reserve Bank of India (RBI) has, by an order dated April 17, 2025, imposed a monetary penalty of ?63.60 lakh (Rupees Sixty three lakh sixty thousand only) on Indian Overseas Bank (the bank) for non-compliance with certain directions issued by RBI on 'Credit Flow to Agriculture- Collateral free agricultural loans' and 'Lending to Micro, Small & Medium Enterprises (MSME) Sector'. 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.
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. ...