RBI Slaps Penalty on Bandhan Bank for Compliance Lapses

The Reserve Bank of India has levied a Rs 44.7 lakh fine on Bandhan Bank, citing lapses in statutory and regulatory compliance. The penalty followed a supervisory evaluation focusing on the bank's financial position as of March 31, 2024.

The RBI's investigation uncovered that Bandhan Bank failed to adhere to its directives, which included paying remuneration in commission form to certain employees and performing unrecorded manual data manipulations. These findings led to a notice demanding the bank justify its non-compliance.

Despite the fine, the RBI clarified that the penalty solely addresses compliance issues and doesn't reflect on the legitimacy of any agreements between the bank and its customers.

(With inputs from agencies.)