RBI news: The Reserve Bank of India (RBI) 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.

"The RBI has imposed a monetary penalty of Rs 31.80 lakh on Indian Overseas Bank for non-compliance with certain directions issued by RBI on 'Priority Sector Lending (PSL) – Targets and Classification'," the central bank said. "This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949," it added.

Following this, a show-cause notice was issued

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