Public sector Indian Overseas Bank (IOB) on Wednesday said it has waived penal charges for non-maintenance of Minimum Average Balance (MAB) in its savings accounts (public scheme) with immediate effect.
The Chennai-headquartered lender said the move is aimed at easing the banking experience for customers and providing them relief.
According to the bank’s statement, IOB has already waived minimum balance charges for schemes such as IOB Sixty Plus, IOB Savings Bank Pensioner, Small Accounts, and IOB Savings Bank Salary Package.
“We are happy to announce this waiver, which will provide significant relief to our account holders,” said Ajay Kumar Srivastava, Managing Director and CEO, IOB. He added that the decision reflects the bank’s commitment to customer-centricity and financial inclusion while making banking more convenient and hassle-free.
The bank clarified that charges for the period up to 30 September 2025, would be levied as per the existing rules.
Penalty For Compliance Lapse
On Tuesday the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 31.8 lakh on Indian Overseas Bank for non-compliance with norms relating to 'Priority Sector Lending (PSL) - Targets and Classification'.
The central bank said a show cause notice was issued after supervisory findings indicated violations. Following the bank’s response, additional written submissions and a personal hearing, RBI concluded that charges were sustained, warranting the penalty.
The violation pertained to the collection of loan-related charges in certain PSL accounts, each with a sanctioned loan amount of up to Rs 25,000.
RBI clarified that the penalty is strictly on account of deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements between the bank and its customers. |
