The Reserve Bank of India (RBI) has imposed a penalty of ₹1 crore on Bandhan Bank for violating licencing norms, the lender has informed the exchanges.
According to RBI’s norms on universal banking licence, an entity which has received a banking licence needs to bring down the shareholding of its non-operative financial holding company, in this case Bandhan Financial Holdings Limited, in the bank to 40% within three years from the date of commencement of business.
Bandhan Bank started functioning as a commercial bank in August 2015 and they were to comply with the RBI norms by August 2018.
Earlier, RBI had put restrictions on the bank including expanding branch presence, for the same violation.
