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This article is more than 6 month old.

RBI imposes total Rs 2 crore penalty on Tamilnad Mercantile Bank, City Union Bank

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The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 2.90 crore on Tamilnad Mercantile Bank, City Union Bank, and Ahmedabad-based Nutan Nagarik Sahakari Bank Ltd.

RBI imposes total Rs 2 crore penalty on Tamilnad Mercantile Bank, City Union Bank
The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 2.90 crore on Tamilnad Mercantile Bank, City Union Bank, and Ahmedabad-based Nutan Nagarik Sahakari Bank Ltd.
For Tamilnad Mercantile Bank, the apex said it has imposed a monetary penalty of Rs 1 crore for non-compliance with certain provisions of directions issued by RBI on "Cyber Security Framework in Banks."
"The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," it said in a release.
For City Union Bank, the RBI has imposed a monetary penalty of Rs 1 crore for contravention of/non-compliance with certain provisions of the directions contained in the Reserve Bank of India (Lending to Micro, Small & Medium Enterprises (MSME) Sector) Directions, 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements.
"The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949 (the Act). This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the release said.
For Nutan Nagarik Sahakari Bank, the central bank has imposed a monetary penalty of Rs 90 lakh for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits’, ‘Know Your Customer (KYC)’ and Circular on ‘Frauds Monitoring and Reporting Mechanism’.
"This penalty has been imposed in exercise of powers vested in RBI under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," it said.
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