Case Brief
What Happened
By an order dated June 24, 2022, RBI imposed a monetary penalty of ₹57.50 lakh on Indian Overseas Bank. The penalty was for non-compliance with RBI directions on fraud classification/reporting, large exposure/CRILC reporting, prudential framework for resolution of stressed assets, and external benchmark based lending. RBI said supervisory inspection revealed failures including delayed reporting of certain ATM card cloning/skimming frauds, deficiencies in CRILC reporting for certain borrowers with aggregate exposure of ₹5 crore and above, and linking certain floating-rate MSME loans to MCLR/Base Rate instead of an external benchmark. RBI clarified that the action was based on regulatory compliance deficiencies and did not pronounce on the validity of any customer transaction or agreement.