RBI said it has imposed penalty of ₹1 crore on Tamilnad Mercantile Bank for non-compliance with certain provisions of directions issued by it on Cyber Security Framework in Banks
The RBI has imposed monetary penalty on City Union Bank, Tamilnad Mercantile Bank and two other lenders for contravention of certain directions issued by the central bank.
A penalty of ₹1 crore has been imposed on City Union Bank Limited for contravention of/non-compliance with certain provisions contained in the RBI (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. In another statement, the RBI said it has imposed penalty of ₹1 crore on Tamilnad Mercantile Bank for non-compliance with certain provisions of directions issued by it on Cyber Security Framework in Banks.
The Reserve Bank of India also imposed a penalty of ₹90 lakh on Nutan Nagarik Sahakari Bank, Ahmedabad for non-compliance with directions Interest Rate on Deposits, Know Your Customer (KYC) and Circular on Frauds Monitoring and Reporting Mechanism.
The apex bank has also imposed monetary penalty of ₹10 lakh on Daimler Financial Services India Private Limited, Pune for non-compliance with certain provisions of the directions issued by RBI contained in 'Reserve Bank Commercial Paper Directions 2017' and 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016'. In each case, the RBI said the penalties were imposed based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them with customers.