Case Brief
The Reserve Bank of India, exercising powers under Section 47A(1)(b) of the Banking Regulation Act, 1949, imposed a monetary penalty of Rs. 5 lakh on Tamilnad Mercantile Bank Ltd. The action followed a show-cause process and was based on findings that the bank violated RBI regulations by not ensuring end-use of funds lent to various borrowers and by failing to ensure diligent KYC compliance when opening accounts.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- Bank
- Action Type
- Monetary penalty
- Order Date