Reserve Bank of India imposes monetary penalty of INR60 million on Tamilnad Mercantile Bank Limited
Reserve Bank of India has informed to public at large that it has imposed, on June 19, 2018, a monetary penalty of ₹ 60 million on Tamilnad Mercantile Bank Limited.
The penalty was for contravention of Master Directions on Issue and Pricing of Shares dated April 21, 2016 (the Directions) issued by RBI.
This 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.
History of TMB Bank
The history of Tamilnad Mercantile Bank Ltd., the then Nadar Bank Ltd., dates back to 1921.
The thought of establishing a bank under the guidance of the able Nadar business community was mooted out in the Anniversary of Nadar Mahajana Sangam held at Tuticorin in 1920.
The proposal was effected soon. The bank was registered on May 11, 1921 as “The Nadar Bank Ltd”.
A group of dedicated men with shrewd acumen and sound integrity had been constituted as Board of Directors and they elected Shri M.V. Shanmugavel Nadar as Chairman on Nov 04, 1921.
The bank was opened by Shri T.V. Balagurusamy Nadar, the then President of the Nadar Mahajana Sangam and the bank threw open its door to the public on Nov 11, 1921 at 9am in Ana Mavanna Building at South Raja Street, Tuticorin.
Spreading the wings of TMB:-
· The bank was having only 4 branches until the year 1947 at Tuticorin, Madurai, Sivakasi and Virudhunagar.
· The bank had also a branch at Colombo in the year 1937 and the same was closed in the year 1939.
· The bank has now 509 full fledged branches all over India.
· The first branch outside the State of Tamilnadu was opened in the year 1976 at Bangalore.
· The first fully computerized branch was opened at WGC Road, Tuticorin on Dec 09, 1984.
· The bank had established its first currency chest in 1993 at Madurai & has industrial finance branches at Coimbatore, Chennai and Secunderabad.
· The Bank has launched ATM Card from Nov 11, 2003.
Nadar (also referred to as Nadan, Shanar and Shanan) is a Tamil caste of South India and Sri Lanka. Nadars are predominant in the south Indian districts of Tuticorin, Kaniyakumari, Tirunelveli and Virudhunagar.
The Nadar community was not a single caste, but developed from an assortment of related subcastes, which in course of time came under the single banner Nadar. Nadars are predominant in the south Indian districts of Tuticorin, Kaniyakumari, Tirunelveli and Virudhunagar.
Nadar climber was the largest subsect of today’s Nadar community. A few subsects of the Nadar community, such as the Nelamaikkarars, were traditionally wealthy landlords and money lenders.
Historically, most Nadars were cultivators of palmyra trees and jaggery and a few were also involved in the toddy trade. Nadar climbers had faced discrimination from major upper castes in some regions.
A martial art that has been called Southern-style Kalaripayattu was historically practised by the Nadars.