RBI Imposes Penalties on Bandhan Bank and Muthoot Housing Finance

The Reserve Bank of India (RBI) has levied substantial penalties on two financial institutions for failing to comply with regulatory norms. Bandhan Bank has been fined Rs 41.8 lakh for lapses in following Know Your Customer guidelines, resulting from inadequate risk categorization and sanctioning director-related loans.

The central bank emphasized that this penalty was imposed due to non-compliance with statutory and regulatory requirements and does not impact any customer transactions or agreements. Similarly, the RBI has fined Muthoot Housing Finance Company Rs 80,000 for failing to adhere to the Fair Practice Code established by the RBI.

In both cases, the RBI clarified that the penalties arose from compliance deficiencies and did not affect any transactions with customers. These actions highlight the RBI's ongoing efforts to enforce financial discipline within India's banking sector.

(With inputs from agencies.)