The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹44.7 lakh on Bandhan Bank (NSE: BANDHANBNK) for deficiencies in statutory and regulatory compliance. The central bank clarified that the action was taken after identifying lapses during a supervisory evaluation.
A statutory inspection was conducted by RBI with reference to Bandhan Bank’s financial position as of March 31, 2024. The inspection revealed multiple instances of non-compliance with RBI directions. Following these findings, the bank was issued a show-cause notice, seeking an explanation for the lapses.
The RBI highlighted specific issues:
The RBI emphasised that the penalty is solely based on deficiencies in compliance and does not question the validity of any transactions or agreements entered into by Bandhan Bank with its customers.
This regulatory action underscores the importance of robust internal controls and adherence to compliance standards. The penalty serves as a reminder for banks to maintain transparent systems, ensure accountability in employee remuneration, and strengthen IT audit mechanisms.
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The RBI’s action against Bandhan Bank highlights the central bank’s strict approach to ensuring compliance and transparency in the financial system. While the penalty does not affect customer transactions, it signals the need for stronger governance and internal checks at the bank.
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Published on: Sep 1, 2025, 12:31 PM IST
Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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