Bank of India fined Rs 4.27 lakh by RBI for note shortages

The Reserve Bank of India imposed a monetary penalty of Rs 4,27,600 on bank of india regarding deficiencies identified at its Nagpur Currency Chest. The regulator penalized the public sector lender for violations involving mutilated, counterfeit, and shortages of notes detected during the processing of soiled note remittances. The bank confirmed that the financial implications of this penalty are not material to its operations.

Regulatory Action Details

The central bank issued the order on July 9, 2026, following an examination of the currency chest operations. The specific action taken was a monetary penalty amounting to Rs 4,27,600. The disclosure was made to the stock exchanges on July 10, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Regulatory Detail	Information
Regulatory Authority	Reserve Bank of India
Nature of Action	Monetary Penalty
Penalty Amount	Rs 4,27,600
Date of Order	09.07.2026
Location of Violation	Nagpur Currency Chest

Violations and Impact

The penalty stems from the detection of mutilated and counterfeit notes, as well as shortages, within the soiled note remittances managed by the Nagpur Currency Chest. In its filing, Bank of India clarified that the imposition of this penalty does not have a quantifiable material impact on its financial, operational, or other activities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.35%	+1.97%	-0.70%	-5.01%	+26.29%	+91.44%

Bank of India reported a 16.58% year-over-year increase in global business, which reached ₹17,55,915 crore in Q1 FY27. This growth was driven by robust expansion in both global deposits and gross advances, reflecting strong momentum across the bank's domestic and international operations as of June 30, 2026.

Key Performance Indicators — Q1 FY27

The bank's gross advances grew by 18.64% to ₹7,97,798 crore, while global deposits increased by 14.92% to ₹9,58,117 crore. Domestic operations also showed significant traction, with domestic gross advances rising 19.12% to ₹6,73,386 crore and domestic deposits growing 16.17% to ₹8,25,157 crore.

The following table details the financial performance for the period:

Particulars	30.06.2025 (Reviewed)	31.03.2026 (Audited)	30.06.2026 (Provisional)*	Y-o-Y Growth (%)
Business (Global)	15,06,142	16,98,662	17,55,915	16.58
Deposits (Global)	8,33,698	9,27,271	9,58,117	14.92
Gross Advances (Global)	6,72,444	7,71,391	7,97,798	18.64
Deposits (Domestic)	7,10,277	8,00,443	8,25,157	16.17
Gross Advances (Domestic)	5,65,297	6,54,292	6,73,386	19.12
RAM Advance (Gross) (Domestic)	3,28,048	3,84,327	3,92,647	19.69

Domestic Advances and RAM Growth

Domestic advances outpaced global advances growth, registering a 19.12% increase compared to the 18.64% rise in global advances. Retail, Agriculture, and MSME (RAM) advances also demonstrated strong performance, growing by 19.69% to reach ₹3,92,647 crore. The figures for Q1 FY27 are provisional and subject to review by the Statutory Central Auditors of the bank.