CHENNAI: RBI has imposed a fine of Rs 1,300 crore on Tamil Nadu Mercantile Bank (TMB). This relates to non-compliance with certain directions issued by the RBI regarding 'Advance Interest Rate' and 'Central Credit Information Central Repository (CRILC) – Revision of Reports', the RBI said in a statement on Tuesday. The penalty order was issued on March 13, 2024. The statutory examination for supervisory evaluation (ISE) of the bank was conducted by the RBI with reference to its financial position as on March 31, 2022. Following this, a notification was issued. Please show why banks should not be penalized for not following the instructions. After considering the bank's response, the Central Bank of India found charges warranting the imposition of a penalty. According to the statement, this included employing multiple benchmarks within the same loan category, not setting prices by reference to the actual benchmark interest rate applicable to certain variable rate loans, and This included erroneously reporting external ratings to CRILC. TMB notified the stock exchange on Tuesday. Already initiated/taken corrective action as required to adjust operations/procedures in line with RBI regulations.
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