Chennai: RBI has imposed a monetary penalty of Rs 1.3 crore on the Tamilnad Mercantile Bank (TMB). It pertains to non-compliance with certain directions issued by RBI on ‘Interest Rate on Advances’ and ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, RBI said in a statement on Tuesday. The order on penalty was issued on March 13, 2024.
The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by the RBI with reference to its financial position as on March 31, 2022. Following this, a notice was issued to show cause on why penalty should not be imposed on the bank for its failure to comply with the directions. After considering the bank’s reply, India’s central bank found charges warranting imposition of monetary penalty. It includes adopting multiple benchmarks within the same loan category, failing to price certain floating rate loans with reference to actual benchmark rate applicable to those loans and wrongly reporting external rating of certain borrowers to CRILC, the statement said.
TMB informed the stock exchange on Tuesday that it has already initiated/taken corrective measures, as necessary, to align the operations/procedures in line with the stipulations of the RBI.
The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by the RBI with reference to its financial position as on March 31, 2022. Following this, a notice was issued to show cause on why penalty should not be imposed on the bank for its failure to comply with the directions. After considering the bank’s reply, India’s central bank found charges warranting imposition of monetary penalty. It includes adopting multiple benchmarks within the same loan category, failing to price certain floating rate loans with reference to actual benchmark rate applicable to those loans and wrongly reporting external rating of certain borrowers to CRILC, the statement said.
TMB informed the stock exchange on Tuesday that it has already initiated/taken corrective measures, as necessary, to align the operations/procedures in line with the stipulations of the RBI.
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