1 month ago
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The Reserve Bank of India has imposed a monetary penalty of ₹1,31,80,000 on Tamilnad Mercantile Bank for non-compliance with certain directions under the provisions of the Banking Regulation Act.
As per the survey, TMB failed to benchmark the interest rate on certain floating rate loans to MSMEs to an external benchmark lending rate; adopted multiple benchmarks within the same loan category; failed to price certain floating rate loans with reference to actual benchmark rate applicable to those loans and wrongly reported external rating of certain borrowers to CRILC, the bank said in a regulatory filing.
The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 2022.
