Current context: RBI imposed monetary penalty on Tamilnad Mercantile Bank Ltd (TMB) by an order dated 24th October 2019.
a. Reserve Bank of India Act, 1934
b. Banking Regulation Act, 1949
c. Banking Regulation (Companies) Rules, 1949
d. Reserve Bank of India (Amendment and Misc. Provisions) Act, 1953
- RBI has imposed Rs 35 Lakh penalty on TMB for non-compliance of provisions issued by RBI on “Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016”.
- RBI is vested with powers under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 to impose such penalty.
- The statutory inspection of the bank with reference to its financial position was done on 31st March 2017.
- Based on the inspection report, show cause notice was issued to the bank asking why penalty should not be imposed for non-compliance with the directions.
- RBI imposed the penalty considering the bank’s reply and oral submissions made in the personal hearing.
Question:
Q.1 RBI has recently imposed a monetary penalty on Tamilnad Mercantile Bank Ltd (TMB) with the power vested to RBI under________?a. Reserve Bank of India Act, 1934
b. Banking Regulation Act, 1949
c. Banking Regulation (Companies) Rules, 1949
d. Reserve Bank of India (Amendment and Misc. Provisions) Act, 1953
