The Reserve Bank of India has imposed a penalty of Rs 41.8 lakh on Bandhan Bank for non-compliance with regulatory norms, including Know Your Customer (KYC) guidelines.
According to the RBI, the bank failed to conduct periodic reviews of risk categorisation for certain accounts and had also sanctioned loans to entities related to its directors, violating prescribed norms.
The central bank clarified that the action is based on deficiencies in statutory and regulatory compliance and does not impact the validity of any transactions or agreements entered into by the bank with its customers.
Additionally, the RBI has also imposed a penalty on Muthoot Housing Finance Company for similar compliance-related lapses.