Tamilnad Mercantile Bank Limited

RBI has imposed a monetary penalty of ₹39.60 lakh on Tamilnad Mercantile Bank Limited for statutory contraventions under the PSS Act and the BR Act. The bank was found to have levied indirect charges on BSBD account holders for UPI payments and to have delayed transfer of eligible amounts to the Depositor Education and Awareness Fund.

The bank must absorb the monetary penalty; the release does not describe any operational restriction, but it signals RBI’s supervisory displeasure and leaves open the possibility of additional action. Customers affected by the charges and statutory fund transfer lapse are referenced only as part of the compliance findings; no direct restitution or deadline is stated.

• section 10A of Payment and Settlement Systems Act, 2007 (PSS Act)
• section 26A of the Banking Regulation Act, 1949 (BR Act)
• section 30(1) read with section 26(6) of the PSS Act

+1 more in the case brief

RBI imposed a monetary penalty of Rs 1.318 crore on Tamilnad Mercantile Bank Limited for regulatory non-compliance. The breaches related to benchmark-linked lending requirements and CRILC reporting.

Tamilnad Mercantile Bank Limited must absorb the monetary penalty and ensure future compliance with RBI directions on lending-rate benchmarking and CRILC reporting. The order does not by itself invalidate customer transactions, but it signals continued supervisory scrutiny and potential for further action if non-compliance persists.

• section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949

RBI imposed a ₹1 crore penalty on Tamilnad Mercantile Bank Ltd. for non-compliance with certain provisions of its Cyber Security Framework directions. The bank had reported cyber incidents, and RBI found the compliance lapses substantiated.

The bank must absorb the monetary penalty and continue complying with RBI's cyber security requirements. The order does not invalidate customer transactions, but it signals regulatory non-compliance and may prompt closer supervisory scrutiny of the bank's cyber controls and incident handling.

• Section 47A(1)(c)
• Section 46(4)(i) of the Banking Regulation Act, 1949

RBI imposed a monetary penalty of Rs 35 lakh on Tamilnad Mercantile Bank Ltd. for non-compliance with fraud classification and reporting directions. The action followed a statutory inspection and show-cause process.

Tamilnad Mercantile Bank Ltd. must absorb the monetary penalty; the release does not describe any additional operational restriction or customer-facing cap. The case serves as a compliance enforcement action tied to fraud classification and reporting obligations.

• Section 47A(1)(c)
• Section 46(4)(i) of the Banking Regulation Act, 1949

RBI imposed monetary penalties on 36 banks for non-compliance with SWIFT-related operational control directions. The penalties were issued by orders dated January 31 and February 25, 2019.

The penalized banks must absorb the financial penalty and continue improving compliance with SWIFT-related controls. RBI also stated it will continue to closely monitor adherence to these controls on an ongoing basis; the action does not pronounce on the validity of customer transactions or agreements.

• Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949

This RBI action affected 36 entities. This profile is linked as bulk member.

RBI imposed a monetary penalty on Tamilnad Mercantile Bank Limited for breaching its directions on issue and pricing of shares. The bank had failed to follow the rules while issuing bonus shares to certain non-resident entities.

Tamilnad Mercantile Bank Limited must bear the penalty and the action serves as an enforcement signal for compliance with RBI's share issuance and pricing directions. The release does not describe any additional operational restriction, but it records a regulatory finding of non-compliance affecting the bank and the non-resident entities involved in the bonus share issuance.

• Section 47A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949

RBI imposed a Rs. 5 lakh penalty on Tamilnad Mercantile Bank Ltd. for lending and KYC-related violations.

The bank must absorb the penalty and address the compliance weaknesses identified by RBI, especially around end-use monitoring of loans and KYC controls for account opening. The action does not indicate a direct operational restriction, but it signals heightened regulatory scrutiny over lending and onboarding processes.

• Section 47A(1)(b) of the Banking Regulation Act, 1949