Case Brief
What Happened
By an order dated February 26, 2024, RBI imposed a monetary penalty of Rs 1,40,76,000 on Bank of India under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005. The penalty followed supervisory inspection findings that the bank had failed to comply with directions on Interest Rate on Deposits, Customer Service in Banks, Interest Rate on Advances, CRILC reporting, and Membership of Credit Information Companies, and had also contravened the Credit Information Companies Rules, 2006. RBI cited instances of non-payment of interest in certain term deposit accounts as disclosed, levy of SMS alert charges based on invalid mobile numbers rather than actual usage, failure to reset interest rates in MCLR and external benchmark-linked advances at the required periodicity, failure to benchmark certain floating-rate retail and MSME loans to an external benchmark, and inaccurate or incomplete reporting to CRILC and CICs.