The Reserve Bank of India (RBI) has fined Bandhan Bank ₹44.7 lakh because the bank did not fully follow certain rules and regulations.
RBI inspected Bandhan Bank based on its financial position as of March 31, 2024. During the inspection, RBI found two main problems:
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The bank gave commission (extra money) to some of its employees in a way that wasn’t allowed.
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Some people at the bank manually changed customer account data, but didn’t keep proper records of who made the changes or why. This is a problem because banks are supposed to keep clear records to prevent mistakes or fraud.
Because of these issues, RBI said the bank had regulatory deficiencies meaning it didn’t follow the rules properly. RBI sent the bank a notice asking why it shouldn’t be fined. After reviewing the bank’s response, RBI decided to impose the fine.
RBI said that the penalty is only for breaking rules, and it’s not about any specific transaction between the bank and its customers. In other words, this doesn’t mean the bank did anything wrong in its dealings with customers, just that it didn’t follow the proper rules and procedures set by RBI.