RBI penalises Bandhan Bank and two Pune-based banks for violation

Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 1 crore on Bandhan Bank for t bringing down promoter shareholding to 40 percent. 

RBI fines Bandhan Bank

Bandhan MFI h obtained an in-principle universal banking license from central bank in 2014 and started full-fledged operations as a bank from August 2015. RBI imposed penalty on account of failure to pare shareholding of Bandhan Financial Holdings Ltd to 40 percent of its paid-up voting capital, within three years from commencement of business of bank, lender said in a BSE filing.

Bandhan Bank came out with an IPO and got listed in March 2018. bank h recently merged with Gruh Finance, which brought down shareholding of promoter from 82.26 percent to 60.96 percent. lender h earlier said it was making efforts to furr reduce shareholding to 40 percent. 

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RBI fines Janata Sahakari Bank and Jalgaon Peoples Co-operative Bank

Similarly, RBI has also imposed a fine of Rs 1 crore on Pune-based Janata Sahakari Bank and Rs 25 lakh on Jalgaon Peoples Co-operative Bank for violating income recognition, vances manment and asset classification rms.

RBI has imposed, by order dated October 16, monetary penalty of Rs 1 crore on Janata Sahakari Bank, Pune, for n-compliance with directions issued on income recognition and asset classification (IRAC) rms, manment of vances and exposure rms and statutory or or restrictions, central bank said in a release on Tuesday.

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In a similarly-worded but separate release, it said monetary penalty of Rs 25 lakh has been imposed on Jalgaon Peoples Co-operative Bank, Jalgaon, Maharashtra ( bank) for n-compliance of se rms.

penalty has been imposed in exercise of powers vested in RBI under provisions of Banking Regulation Act, 1949, taking into account failure of bank to here to aforesaid directions issued by RBI, it said referring to banks. "This action is based on deficiencies in regulatory compliance and is t intended to prounce upon validity of any transaction or agreement entered into by bank with its customers," RBI said.

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