RBI imposes monetary penalty on Indian Overseas Bank
The Reserve Bank of India (RBI) has, by an order dated June 24, 2022, imposed a monetary penalty of ₹57.50 lakh
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on Indian Overseas Bank (the bank) for non-compliance with certain directions issued by RBI on ‘Reserve Bank of India
The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2020,
‘Creation of a Central Repository of Large Common Exposures - Across Banks’ read with ‘Central Repository of Information on Large Credits (CRILC)
Revision in Reporting’ and ‘Prudential Framework for Resolution of Stressed Assets’, and ‘External Benchmark Based Lending’
This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949 (the Act).
revealed non-compliance with the directions issued by RBI, inter-alia, to the extent the bank (i) failed to report certain instances of frauds involving ATM card cloning / skimming,
failed to ensure integrity and quality of data when it did not report credit information in CRILC on certain borrowers having aggregate exposure of ₹5 crore and above