MUMBAI: The Reserve Bank of India (RBI) announced on Friday that it has imposed a penalty of Rs 41.8 lakh on Bandhan Bank due to non-compliance with certain regulations, particularly those related to Know Your Customer (KYC) requirements.
The RBI cited that Bandhan Bank did not perform periodic risk categorization reviews for specific account types and approved loans associated with its directors.
“This action is based on deficiencies in statutory and regulatory compliance, and it does not imply any judgment on the validity of transactions or agreements between the bank and its customers,” stated the RBI.
Additionally, the central bank has imposed a penalty of Rs 80,000 on Muthoot Housing Finance Company for failing to adhere to the guidelines related to the ‘Fair Practice Code’. Similarly, the RBI emphasized that this penalty is due to a lapse in regulatory compliance and does not comment on the validity of any transactions or agreements made by the company with its customers.
