Indian bank fined by RBI for regulatory non-compliance

Indian Bank (BSE: INDIANB) disclosed that the Reserve Bank of India (RBI) has imposed a monetary penalty of INR 1,61,40,000. The penalty stems from contraventions of provisions under Section 26A of the Banking Regulation Act, 1949, pertaining to the non-transfer of eligible amounts to the Depositor Education and Awareness Fund within the stipulated period. Furthermore, the RBI cited non-compliance with specific directives related to 'Interest Rate on Advances', ‘Kisan Credit Card (KCC) Scheme' and 'Lending to Micro, Small and Medium Enterprises (MSME) Sector'. Indian Bank has stated that it has taken necessary preventive actions to prevent such recurrences in the future. The announcement was made on April 25, 2025, in accordance with SEBI (LODR) Regulations, 2015.