Placeholder canvas

RBI imposes penalty of 1 crore on Bandhan Bank for non-compliance

Date:

The Reserve Bank of India (RBI) has imposed a monetary penalty of One crore on Bandhan Bank Limited for not meeting the guidelines on its promoter holding norms.

The central bank has, by an order dated October 29, 2019, imposed a penalty of ₹ One crore on Bandhan Bank Limited for non-compliance with the guidelines on promoter holding contained in Guidelines for Licensing of New Banks in Private Sector dated February 22, 2013 read with the conditions imposed by RBI in exercise of powers under section 22 of the Banking Regulation Act, 1949 at the time of issuing banking licence to the bank.

ALSO READ: Rupee 18 Paise higher at 70.12 against dollar in early trade

This penalty has been imposed in exercise of powers vested in RBI, taking into account the default committed by the bank in complying with the aforesaid licensing guidelines and conditions. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank, RBI stated.

The bank was required to bring down the shareholding of its Non-Operative Financial Holding Company in the bank in excess of 40% of the total paid-up equity capital to 40% within three years from the date of commencement of business of the bank, RBI said.

However, as the bank failed to comply with the said licensing guidelines, a notice (SCN) was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the said licensing guidelines.

After considering the reply received from the bank, submissions made by the bank during the personal hearing and the documents submitted by it, RBI came to the conclusion that the bank had failed to comply with the licensing guidelines.

Click here for Latest News updates and viral videos on our AI-powered smart news

For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Biden Administration Approves $60Million Aid For Baltimore Bridge Collapse

The Federal Administration in a statement on Thursday said that it has provided the quick-release funds to rebuild the collapsed bridge within hours of receiving a request from Maryland Department Of Transportation

Fact Check: Lok Sabha Polls Will Be Held Using EVMs; Don’t Fall For False Claim

Ahead of the Lok Sabha polls, a newspaper cutout...

Four Killed, Five Wounded In Stabbing Incident In North Illinois

Redd mentioned that not all of the victims had stab wounds and none of them were shot. She added by saying that they have a suspect in custody

Hope Everyone’s Rights Are Protected: UN On Kejriwal’s Arrest

Delhi CM Kejriwal was arrested by the ED(Enforcement Directorate) on March 21 in the Delhi liquor policy case, days ahead of the Lok Sabha polls