Penalty imposed on Bank of India, Bandhan Bank by RBI

The Reserve Bank of India has imposed a penalty of Rs 1.4 crore on Bank of India for non-compliance with certain regulatory norms. The private sector lender, Bandhan Bank has also faced a penalty of Rs 29.55 lakh for non-compliance with certain directions.

Bank of India has faced the penalty due to non-compliance with the RBI’s directions related to ‘interest rate on deposits’, ‘customer service in banks’, ‘interest rate on advances’, and contravention of provisions of Credit lnformation Companies Rules, 2006.

The RBI said statutory inspection for supervisory evaluation of the bank was conducted by it with reference to its financial position as on March 31, 2021 and March 31, 2022.

The central bank has also imposed a penalty of Rs 13.60 lakh has been imposed on Indostar Capital Finance for non-compliance with the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’ and with certain provisions of KYC directions.

In all cases, the penalties were imposed for deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers, the RBI said.