The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 44.70 lakh (Rupees Forty-Four Lakh and Seventy Thousand only) on Bandhan Bank Limited for contravention of section 10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain directions issued by RBI on Automation of Income Recognition, Asset Classification and Provisioning processes in banks. The bank paid remuneration in the form of commission to some employees, which is a violation of the law. Hence RBI has imposed a fine of ₹44.70 lakh on Bandhan Bank.
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| RBI Imposes Rs 44.7 lakh Penalty on Bandhan Bank |
RBI Imposes ₹44.7 lakh Penalty on Bandhan Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹44.70 lakh on Bandhan Bank Limited for contravention of section 10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), and non-compliance with certain directions issued by RBI on Automation of Income Recognition, Asset Classification and Provisioning processes in banks.
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47 A (1) (c) read with section 46 (4) of the BR Act.
The bank paid remuneration in the form of commission to some employees, which is a violation of the law. Hence RBI has imposed a fine on Bandhan Bank.
RBI Imposes Penalty on Bandhan Bank: Background
The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- Bandhan Bank paid remuneration in the form of commission to certain employees.
- Bandhan Bank had carried out manual intervention through back-end in respect of data of certain accounts and had not captured the audit trails/logs of access with specific user details in the system.
The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
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About Bandhan Bank
Bandhan Bank was established on 23 August 2015 and its headquarter is located in Kolkata, West Bengal. In its journey from an NGO to an NBFC and finally a universal bank, the objective has remained reaching out to the unbanked and the under-banked and providing last-mile banking for all, big or small.
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Tagline of Bandhan Bank
Bandhan Bank tagline is Aapka Bhala. Sabki Bhalai.’, (Your benefit. Everyone’s welfare.)
Objective of Bandhan Bank
The main objective of Bandhan Bank has shifted from financial inclusion to inclusive banking.
Vision of Bandhan Bank
The vision of Bandhan Bank is to be a world class bank for convenient and affordable financial solutions to all, in an inclusive and sustainable manner.
Mission of Bandhan Bank
The mission of Bandhan Bank is to provide our customers with accessible, simple, cost-effective and innovative financial solutions in a courteous and responsible manner. To create value for all stakeholders with a committed team, robust policies and superior systems and technology.
About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Bandhan Bank for upcoming exams
- Founded: 23 August 2015
- Founders: Chandra Shekhar Ghosh
- Headquarters: Kolkata, West Bengal
- Number of locations: Approx 6,350 banking outlets (31 March 2025)
- Chairman: Dr. Anup Kumar Sinha
- Managing Director and Chief Executive Officer: Partha Pratim Sengupta
- Number of employees: 73,000 (2025)
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