Case Brief
What Happened
RBI, by order dated March 23, 2026, imposed a monetary penalty of ₹58.50 lakh on Bank of India. The penalty followed supervisory inspection findings and a show-cause process, and was based on the bank’s non-compliance with RBI directions on Priority Sector Lending (Targets and Classification) and Interest Rate on Deposits. RBI sustained charges that the bank collected ad-hoc service/inspection/processing charges in certain priority sector loan accounts with sanctioned amounts up to ₹25,000, and that it did not pay interest on certain Term Deposit Receipts from the date of maturity until repayment. The penalty was imposed under the Banking Regulation Act, 1949, and RBI noted that it was without prejudice to any other action that may be initiated.