New Delhi, Sep 30
The Reserve Bank of India (RBI) on Tuesday said it has imposed a penalty of Rs 31.8 lakh on Indian Overseas Bank for failing to follow certain rules related to 'Priority Sector Lending (PSL) - Targets and Classification'.
The central bank said that during its supervision, it found instances of non-compliance with PSL directions.
Following this, a show cause notice was issued to the bank. After reviewing the bank’s reply, additional submissions, and oral statements during a personal hearing, the RBI concluded that the charges were valid and decided to impose the penalty.
“The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” RBI said.