Bank of India (BoI) has been penalized by the Reserve Bank of India (RBI) for irregularities observed at its Bhilai Currency Chest. The central bank imposed a fine of Rs 1,35,750 on BoI following an inspection that revealed certain discrepancies in the currency chest operations.

Penalty Details

Bank's Response

Bank of India has addressed the situation with the following actions:

1. Preventive Measures: The bank stated that it has implemented necessary preventive measures to avoid recurrence of such instances in the future.

2. Financial Impact: BoI has assured that the monetary penalty has no material impact on its financial operations or other activities.

Implications

While the penalty amount is relatively small for a bank of BoI's size, it underscores the importance of maintaining strict compliance with RBI regulations, particularly in sensitive areas such as currency chest operations. The incident serves as a reminder for all banks to ensure robust internal controls and adherence to regulatory guidelines.

Banks are expected to maintain the highest standards of operational integrity, especially in currency chests which play a crucial role in the distribution and management of currency notes. This penalty highlights the RBI's ongoing efforts to ensure the smooth functioning of the banking system and maintain public trust in financial institutions.

As Bank of India has already taken steps to address the issue, it is expected that the bank will strengthen its processes to prevent similar occurrences in the future, thereby maintaining its reputation and regulatory compliance.

Bank of India (BOI) held its Extraordinary General Meeting (EGM) on November 7, 2025, via video conferencing, marking a significant event in the bank's corporate calendar. The meeting, which saw participation from 35 shareholders and six directors, addressed key governance matters and leadership transitions.

Shareholder Director Election

The EGM's agenda initially included the election of a shareholder director. However, this item was resolved prior to the meeting. Shri Prabodh Parikh emerged as the sole valid nominee and was deemed elected as the Shareholder Director for a three-year term, commencing from November 29, 2025, to November 28, 2028. This appointment was made in accordance with Regulation 66 of the Bank of India (Shares and Meetings) Regulations, 2007.

Executive Director Term Extensions

The core focus of the EGM centered on two critical resolutions regarding the extension of terms for executive directors:

1. P.R. Rajagopal's Term Extension: Shareholders approved the extension of Shri P.R. Rajagopal's term as Executive Director. His tenure, which was set to expire on February 28, 2026, has been extended until his superannuation date of July 31, 2027, subject to any further orders from the Government of India.

2. Subrat Kumar's Term Extension: The meeting also saw the approval of a three-year extension for Shri Subrat Kumar as Executive Director. His current term, due to end on November 20, 2025, has been extended, subject to further orders from the Government of India.

Voting Results

The voting results for these resolutions were overwhelmingly positive:

Both resolutions passed with a resounding majority, reflecting strong shareholder support for the bank's executive leadership decisions.

Meeting Proceedings

The EGM was chaired by Shri M R Kumar, Non-Executive Chairman of the Bank, and was conducted in compliance with regulatory guidelines. The Central Government's interests were represented by Shri Jitendra Asati, Director, Ministry of Finance, who was authorized to participate and vote in the meeting.

E-voting facilities were provided to shareholders through the National Securities Depository Limited (NSDL) platform, ensuring a transparent and accessible voting process. The bank adhered to all necessary regulations, including those set by SEBI and the Companies Act, 2013.

This EGM marks a significant step in Bank of India's corporate governance, ensuring continuity in its executive leadership and reinforcing shareholder engagement in key decision-making processes.