RBI fines Indian Overseas Bank ₹2.2 crore for breach of multiple norms

Reserve Bank of India He was fined ₹ 2.2 crore Indian Overseas Bank About the violation of various regulatory rules, the central bank said in a statement.

The breach relates to guidelines for disclosing NPA (non-performing assets) spacing, deposit rates, and advising on Man in the Middle (MiTM) attacks at ATMs.

RBI conducted the statutory inspection of the supervisory evaluation as per the financial position of the Indian Overseas Bank from March 2021, finding breach of certain provisions.

The public sector bank failed to make a mandatory minimum transfer of an amount equivalent to 25 percent of its declared profits for FY21 to its Reserve Fund. Furthermore, there was significant divergence between NPAs, as reported by and as assessed by inspection, and the bank offered interest on non-individual component deposits at rates applicable to seniors/seniors, in certain cases.

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The lender also did not implement ATM control measures related to the end-to-end encryption of communications between the ATM terminal/PC and the ATM switch, within the specified timelines, the RBI said.

As a result, the central bank issued two notifications showing two reasons to the bank, and decided that the charges were proven after considering the applications submitted by the bank.

“This action is based on deficiencies in regulatory compliance and is not intended to be a statement on the validity of any transaction or agreement entered into by the Bank with its customers,” the statement read.

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