RBI has imposed monetary penalities on Bank of India, Bandhan Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.40 lakh crore on the Bank of India for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Customer Service in Banks’, ‘Interest Rate on Advances’, ‘Central Repository of Information on Large Credits (CRILC) - Revision in Reporting’, and ‘Membership of Credit Information Companies (CICs)’ and contravention of provisions of Credit Information Companies Rules, 2006 (ClC Rules).

This penalty has been imposed in the exercise of powers vested in RBI conferred under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51(1) of the Banking Regulation Act, 1949 and section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005.

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Additionally, RBI has also imposed a monetary penalty of Rs 29.55 lakh on Bandhan Bank Ltd. for non-compliance with certain directions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.

 

 

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The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI regarding its financial position as of March 31, 2022. Based on supervisory findings of non-compliance with regulatory instructions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the instructions.

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