The Reserve Bank of India (RBI) has levied a penalty of Rs 44.7 lakh on Bandhan Bank due to non-compliance with certain statutory and regulatory norms. An inspection revealed that the bank paid commissions to employees and made manual interventions in account data without proper audit trails. The penalty is based on regulatory deficiencies.

RBI imposes Rs 44.70 lakh fine on Bandhan Bank

Bandhan Bank Hit with Rs 44.7 Lakh RBI Penalty

The Reserve Bank of India (RBI) has slapped Bandhan Bank with a hefty fine of Rs 44.7 lakh. The penalty stems from deficiencies uncovered during a statutory inspection of the bank's financial position as of March 31, 2024.

Key Violations: The RBI's statement highlights several key areas of non-compliance:

Improper Remuneration: The bank paid commissions to certain employees in a manner inconsistent with RBI regulations.
Manual Data Intervention: Bandhan Bank engaged in manual backend manipulation of account data, failing to maintain adequate audit trails and user logs.

The RBI emphasizes that this penalty specifically addresses regulatory and statutory compliance shortcomings. It does not comment on the validity of any transactions or agreements the bank has with its customers.

This action underscores the RBI's commitment to maintaining stringent regulatory oversight within the Indian banking sector. The penalty serves as a reminder to all financial institutions of the importance of adhering to all directives and maintaining transparent operational practices.