New Delhi, October 29, 2019: The Reserve Bank of India (RBI) on Tuesday imposed Rs 1 crore penalty on Bandhan Bank for non-compliance with promoter holding norms, contained in the licensing guidelines.
Under the guidelines, the bank was required to bring down the shareholding of its “non-operative financial holding company” to 40 percent of its paid-up equity capital within three years from the date of the start of business.
However, as the bank failed to comply with the licensing guidelines, a show-cause notice was issued asking why a penalty should not be imposed for the non-compliance, the RBI said in a statement on Tuesday.
“After considering the reply received from the bank, submissions made during personal hearing and documents submitted, the RBI came to the conclusion that the bank had failed to comply with the licensing guidelines and decided to impose the penalty,” the banking regulator said. (IANS)
