Penalty of Rs.1.70 Cr imposed by RBI on Bank of India and Bandhan Bank

The Reserve Bank of India (RBI) has imposed a Penalty of Rs.1.70 Crore on the Bank of India and Bandhan Bank for non-compliance with certain directions issued by RBI.

RBI imposed a monetary penalty of Rs.1,40,76,000 on 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).

A Monetary Penalty of Rs,29.55 lakh was levied on Bandhan Bank Ltd. for non-compliance with certain directions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.

This penalty was imposed in accordance with the provisions of section 47A (1) (c) read with sections 46 (4) (i) and 51(1) of the Banking Regulation Act of 1949, as well as section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act of 2005.

The above enforcement action is based on deficiencies in regulatory compliance and is not intended to rule on the legitimacy of any transaction or agreement entered into by the bank with its clients. Furthermore, the imposition of this monetary penalty does not preclude the RBI from taking further action against the bank.