Case Brief
On June 19, 2018, RBI imposed a monetary penalty of ₹60 million on Tamilnad Mercantile Bank Limited. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 for contravention of the Master Directions on Issue and Pricing of Shares dated April 21, 2016. RBI said the bank failed to adhere to these directions while issuing bonus shares to certain non-resident entities.
Action Snapshot
- Primary Impact
- Fine: Rs 6.00 Cr
- Entity Type
- Bank
- Action Type
- Monetary penalty
- Order Date