Tamil Nadu, 24th April 2023: The Tamil Nadu State Apex Co-operative Bank Limited, Chennai has been penalized by the Reserve Bank of India (RBI) for violating section 26 A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act) and for failing to comply with the directives issued by the National Bank for Agriculture and Rural Development (NABARD) on “Review of Frauds – Guidelines on Monitoring and Reporting System”. The penalty amount is ₹16.00 lakh (Rupees Sixteen Lakh only), and this penalty has been imposed by the RBI under section 47 A (1) (c) read with sections 46 (4) (i) and 56 of the BR Act.
It is important to note that this action is taken to address deficiencies in regulatory compliance and is not intended to comment on the validity of any transaction or agreement entered into by the bank with its customers.