Case Brief
What Happened
RBI imposed a monetary penalty of ₹1,61,40,000 on Indian Bank by order dated April 08, 2025. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949, after an inspection for supervisory evaluation (ISE 2023) found contraventions and non-compliance with RBI directions. RBI sustained charges that the bank failed to benchmark certain floating-rate retail loans and certain MSME loans to an external benchmark rate, obtained collateral security in respect of certain KCC loans up to ₹1.6 lakh and certain MSME loans up to ₹10 lakh, and did not transfer the eligible amount to the Depositor Education and Awareness Fund within the prescribed period.