Reserve Bank on Friday imposed a penalty of Rs 57.5 lakh on state-owned Indian Overseas Bank (IOB) for non-compliance with certain norms, including those related with frauds classification and reporting.
Based on the statutory inspection of the bank with reference to its financial position at end-March, 2020, and examination of reports, the Reserve Bank of India (RBI) imposed the penalty.
Giving details, the central bank said IOB failed to report certain instances of frauds involving ATM card cloning/ skimming, to the RBI within three weeks from the date of detection.
Another non-compliance was that the bank failed to ensure integrity and quality of data when it did not report credit information in CRILC on certain borrowers having aggregate exposure of Rs 5 crore and above.
The bank also linked certain floating rate loans to Micro and Small Enterprises, extended by it on or after October 1, 2019, to MCLR/Base Rate instead of an external benchmark.
The RBI, however, added that the penalty is based on the 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.