RBI Levies ₹44.70 Lakh Penalty on Bandhan Bank for Regulatory Non-Compliance.
Banking & Finance
On August 29, 2025, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹44.70 lakh on Bandhan Bank for deficiencies in statutory and regulatory compliance. The penalty underscores the RBI's commitment to ensuring adherence to regulatory norms within the banking sector.
- The penalty follows a statutory inspection conducted by the RBI to assess Bandhan Bank's financial position as of March 31, 2024. The inspection revealed that the bank had paid commissions to certain employees and made manual interventions in account data without proper audit trails, leading to deficiencies in compliance with regulatory norms.
- The RBI emphasized that the penalty was imposed based on deficiencies in statutory and regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. This highlights the RBI's role in maintaining the integrity of the banking system through stringent regulatory oversight.
Main Point :- (i) In response to the RBI's findings, Bandhan Bank was advised to show cause as to why a penalty should not be imposed for its failure to comply with the RBI's directions. The bank's management is expected to take corrective actions to address the identified deficiencies and strengthen its compliance framework.
(ii) This penalty serves as a reminder to other financial institutions about the importance of adhering to regulatory norms and maintaining robust compliance mechanisms. The RBI's proactive approach in imposing penalties underscores its commitment to ensuring the stability and integrity of the Indian banking system.
Governor : Sanjay Malhotra
Headquarter : Mumbai
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