The Reserve Bank of India has slapped a fine of Rs. 60 million on Tamilnad Mercantile Bank Limited (TMB) for contravention of its directive.

The RBI said that the TMB had been fined for its lapses in adhering to the master directions issued by it on the issue and pricing of shares.

“The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949 taking into account the failure of the bank to adhere to the directions while issuing bonus shares to certain non-resident entities,’’ the central bank said in a release.