Bandhan Bank Fined ₹44.70 Lakh by RBI

1 September 20251 min read

Why in the news

RBI penalised Bandhan Bank in September 2025 after a supervisory inspection, showing its close watch over compliance.

Fine: ₹44.70 lakh.
Lapse 1: some staff got commission-based pay, against RBI rules.
Lapse 2: hand edits to backend data left no audit trail with user details.
Also breached Section 10(1)(b)(ii) and RBI’s 14 September 2020 circular on automating IRAC norms.

47A(1)(c): RBI’s power to penalise non-compliant banks.
46(4): ceiling of ₹1 crore plus ₹50,000 daily for continuing default.
Section 10(1)(b)(ii): a bank may not hire people with serious convictions or those judged unfit to guard depositor and public interest.

1. Which penalty amount did RBI levy on Bandhan Bank after its inspection tied to the March 2024 position?

The notes state the fine was ₹44.70 lakh.

2. Under which Act did RBI penalise Bandhan Bank in 2025?

Penalty was imposed under Sections 47A(1)(c) and 46(4) of the Banking Regulation Act, 1949.

3. Which Bandhan Bank lapse concerned its employees' pay?

RBI cited commission-based remuneration contrary to its rules.

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