MUMBAI: The Reserve Bank of India (RBI) on Tuesday said it has imposed a monetary penalty of Rs 1 crore on Bandhan Bank for non-compliance with the guidelines on promoter holding.
The bank was required to bring down the shareholding of its non-operative financial holding company in the bank in excess of 40 per cent of the total paid-up equity capital to 40 per cent within three years from the date of commencement of business of the bank.
However, as the bank failed to comply with the said licensing guidelines, a show cause notice was issued to the bank by RBI 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 read with the licensing conditions imposed by RBI and decided to impose a monetary penalty on the bank,” the central bank said in a release.
Source- Economic Times.