Mumbai, Oct. 28 (PTI): The Reserve Bank has imposed a penalty of INR 35 lakh on Tamilnad Mercantile Bank for violating norms on frauds classification and notification.
The central bank imposed the fine via an order dated October 24, 2019. The bank has been penalised for “non-compliance with certain provisions of directions issued by RBI on frauds classification and reporting by commercial banks and select FIs directions 2016,” the RBI said in a release on October 25.
The RBI had conducted a statutory inspection of Tamilnad Mercantile Bank on its financial position as on March 31, 2017, based on which a show cause notice was issued to the bank as to why penalty should not be imposed for non-compliance with the directions.
After considering the bank’s reply to the notice and oral submissions made in the personal hearing, the RBI concluded that the non-compliance warranted imposition of monetary penalty, it said further.
