RBI imposes penalties on DCB Bank, Tamilnad Mercantile Bank

The Reserve Bank of India on Tuesday it has imposed penalties on DCB Bank and Tamilnad Mercantile Bank for non-compliance with certain directions related to 'interest rate on advances'. A monetary penalty of Rs 63.6 lakh has been imposed on DCB Bank, the RBI said in a statement.

In a separate release, the central bank informed that a penalty of Rs 1.31 crore has been imposed on Tamilnad Mercantile Bank for non-compliance with certain directions issued by it on 'Interest Rate on Advances' and 'Central Repository of Information on Large Credits (CRILC) - Revision in Reporting'.

In both cases, the RBI said the penalties were based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transactions or agreements entered into by them with their customers.