Penalties Imposed on DCB and Tamilnad Mercantile Bank by RBI

The Reserve Bank of India (RBI) fined DCB Bank and Tamilnad Mercantile Bank on Tuesday for non-compliance with the “interest rate on advances.” In a statement, the RBI said DCB Bank was penalised for Rs 63.6 lakh.

In a separate announcement, the central bank stated that Tamilnad Mercantile Bank has been fined Rs 1.31 crore for non-compliance with certain directives related to ‘Interest Rate on Advances’ and ‘Central Repository of Information on Large Credits (CRILC): Revision in Reporting.’

The RBI clarified that in both instances, the penalties were imposed due to shortcomings in regulatory compliance and were not intended to make judgments on the validity of any transactions or agreements made by the banks with their customers.