India, Nov. 14 -- The Reserve Bank of India (RBI) has, by an order dated November 13, 2025, imposed a monetary penalty of Rs 39.60 lakh (Rupees Thirty Nine Lakh Sixty Thousand only) on Tamilnad Mercantile Bank Limited (the bank) for contravention of provisions of section 10A of Payment and Settlement Systems Act, 2007 (PSS Act) and section 26A of the Banking Regulation Act, 1949 (BR Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 30(1) read with section 26(6) of the PSS Act and section 47A(1)(c) read with section 46(4)(i) of the BR Act.
The Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank was conducted by RBI with reference to its financial position as on Marc...