Case Brief
What Happened
By an order dated May 20, 2021, RBI imposed a monetary penalty of ₹1.00 crore on Tamilnad Mercantile Bank Ltd. for non-compliance with certain provisions of its directions on "Cyber Security Framework in Banks" dated June 2, 2016. RBI said the bank had reported several cyber incidents in October 2019, and examination of those incident reports revealed non-compliance with the applicable directions. After issuing a show-cause notice, considering the bank's reply, oral submissions in personal hearing, and additional submissions, RBI concluded the charges were substantiated. The penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.