More Stories

Informist, Friday, Apr. 25, 2025

--RBI fines Indian Bank INR 16.14 mln for breaching multiple norms 

NEW DELHI – The Reserve Bank of India Friday said it had imposed a penalty of INR 16.14 million on Indian Bank for not complying with certain directions of the central bank on interest rate on advances, Kisan Credit Card scheme, and lending to Micro, Small and Medium Enterprises sector. 

"The bank failed to benchmark the interest rate on certain floating rate retail loans and loans to certain Micro, Small and Medium Enterprises to an external benchmark rate," the RBI said. The bank had also obtained collateral security in respect of certain Kisan Credit Card loans upto INR 160,000 and certain loans to Micro and Small Enterprises upto INR 1 million, the RBI said.

Indian Bank also did not transfer eligible amount to the Depositor Education and Awareness Fund within the prescribed period, the RBI said.

The RBI conducted a statutory inspection for supervisory evaluation of the bank for its financial position as on Mar. 31, 2023. The RBI sent Indian Bank a show-cause notice based on the supervisory findings of the inspection, the central bank said.

After considering the bank's reply to the notice, the RBI found that the charges against the lender were sustained and warranted imposition of a monetary penalty.  End

Reported by Shubham Rana

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.