RBI Penalizes Bank of India and Bandhan Bank for Non-Compliance Of Rules

RBI Penalizes Bank of India and Bandhan Bank for Non-Compliance Of Rules

It is not intended to pronounce the validity of any transaction or agreement entered by the m with their customers

The Reserve Bank of India (RBI) has imposed a penalty of Rs.1.4 crore on the Bank of India for non-compliance with certain regulatory norms. It has also imposed a penalty of Rs.29.55 lakh on private sector lender Bandhan Bank for disobeying certain directions.

The Bank of India has been fined for defying the RBI’s directions on interest rates on deposits and advances, customer service in banks, and contravention of the Credit Information Companies Rules, 2006 provisions.

The RBI said that it conducted a statutory inspection for supervisory evaluation of the bank on its financial position from 31 March 2021 to 31 March 2022.

The banking regulator has also imposed a penalty of Rs.13.60 lakh on Indostar Capital Finance Ltd for non-compliance with Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016, and certain KYC provisions.

The penalties are not intended to be pronounced upon the validity of any transaction or agreement by the entities with their customers.