The statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by RBI with reference to its financial position as on 31 March 2019. The bank had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated 1 January 2019 pertaining to detection of fraud in an account.

Examination of the risk assessment report pertaining to the ISE and the FMR revealed non-compliance with/contravention of the aforesaid directions, viz., breach of stipulated transaction limits; delay in transfer of unclaimed balances to Depositor Education and Awareness (DEA) Fund; delay in reporting a fraud to RBI and sale of a fraudulent asset.

"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI said in a statement.

Bank of India is a public sector bank. The Government of India held 89.10% stake in Bank of India as on 31 March 2021.

The public sector bank reported a net profit of Rs 250.19 crore in Q4 FY21 as against a net loss of Rs 3,571.41 crore in Q4 FY20. Total income fell 6.84% to Rs 11,379.84 crore in Q4 FY21 over Q4 FY20.