Mumbai: The Reserve Bank on Friday imposed a fine of Rs 57.5 lakh on a state-run company. Indian Overseas Bank (IOB) for non-compliance including certain criteria relating to classification and reporting of frauds. Based on the statutory inspection of the Bank and examination of the reports with reference to its financial position at the end of March, 2020, reserve Bank of India ,reserve Bank of India) fined.
Giving details, the central bank said that the IOB has failed to report certain instances of fraud which include ATM Card cloning/skimming to RBI within three weeks from the date of detection.
Another non-compliance was that the bank failed to ensure the integrity and quality of data when it did not report credit information to CRILC on certain borrowers with total exposure of Rs 5 crore and above.
The bank has also added some floating rate loans to micro and small enterprisesOn or after October 1, 2019, the MCLR/base rate has been increased instead of the external benchmark.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers.
Giving details, the central bank said that the IOB has failed to report certain instances of fraud which include ATM Card cloning/skimming to RBI within three weeks from the date of detection.
Another non-compliance was that the bank failed to ensure the integrity and quality of data when it did not report credit information to CRILC on certain borrowers with total exposure of Rs 5 crore and above.
The bank has also added some floating rate loans to micro and small enterprisesOn or after October 1, 2019, the MCLR/base rate has been increased instead of the external benchmark.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the bank with its customers.