Case Brief
What Happened
By an order dated April 17, 2025, RBI imposed a monetary penalty on Indian Overseas Bank for non-compliance with certain RBI directions relating to credit flow to agriculture and lending to the MSME sector. The action was taken after statutory inspection and supervisory review, and RBI found that the bank had obtained collateral security for agricultural loans up to ₹1.60 lakh and for loans up to ₹10 lakh extended to certain MSEs. The penalty was imposed under the Banking Regulation Act, 1949.