Case Brief
What Happened
RBI imposed a monetary penalty of ₹39.60 lakh on Tamilnad Mercantile Bank Limited by order dated November 13, 2025. The penalty was imposed after a supervisory inspection (ISE 2024) and a show-cause process in which RBI sustained charges that the bank had indirectly imposed charges on Basic Savings Bank Deposit account holders for UPI payments and had not transferred eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. RBI stated the action was taken under section 30(1) read with section 26(6) of the PSS Act and section 47A(1)(c) read with section 46(4)(i) of the BR Act.