Summary of this article
RBI fines Bandhan Bank Rs 41.8 lakh for violations
Muthoot Housing Finance penalised Rs 80,000 for norms breach
Penalties relate to KYC and fair practice code lapses
The Reserve Bank (RBI) on Friday said it has imposed a Rs 41.8 lakh penalty on Bandhan Bank for non-compliance with certain norms, including directions on Know Your Customer.
While imposing a penalty on Bandhan Bank, the RBI said the bank failed to carry out periodic review of risk categorisation of certain categories of accounts, and had sanctioned director-related loans.
"The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the RBI said.
In another statement, the central bank said it has slapped a penalty of Rs 80,000 on Muthoot Housing Finance Company for non-compliance with certain directions issued by the RBI on 'Fair Practice Code'.
In this case also, the RBI said, the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
