Monetary Penalty on City Union, Tamilnad Mercantile Bank & Other Two Lenders

Current Context: The Reserve Bank of India (RBI) has imposed monetary penalty on City Union Bank, Tamilnad Mercantile Bank, Nutan Nagarik Sahakari Bank and Daimler Financial Services India Private Limited.

 

• The monetary penalty was in regards for contravention of certain directions set by the RBI.
• The penalty of Rs 1 crore was imposed on City Union Bank Limited , as the bank’s non-compliance with certain provisions framed by the RBI under ‘Lending to Micro, Small & Medium Enterprises (MSME) Sector) Directions, 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture – Agricultural Loans – Waiver of Margin/Security Requirements’
• Also the penalty of Rs 1 crore as imposed on Tamilnad Mercantile Bank for non-compliance with directions and norms issued by it on Cyber Security Framework in Banks.
• The penalty of Rs 90 lakh was imposed on Ahmedabad based,Nutan Nagarik Sahakari Bank, for non-compliance with directions Interest Rate on Deposits, KYC norms and Circular on Frauds Monitoring and Reporting Mechanism.
• The penalty of Rs 10 lakh was imposed on Pune based on Daimler Financial Services India Private Limited for non-compliance with certain provisions set by the RBI under 'Reserve Bank Commercial Paper Directions 2017' and 'Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016'.
• Static Part: 
• HQ of RBI: Mumbai
• 25th Governor of RBI: Shaktikanta Das

Question: 

Q: 1: In May 2021, RBI imposed how much amount of penalty on City Union Bank Limited for non-compliance with certain provisions framed by the RBI?
a. Rs 30 lakh
b. Rs 75 lakh
c. Rs 50 lakh
d. Rs 1 crore