RBI fines Bank of India and Bandhan for violating regulatory norms
Banking and Finance
3 min read
The Reserve Bank of India (RBI) has fined the public sector bank Bank of India and the private sector Bandhan Bank for non-compliance with regulatory norms. The Banking Regulation Act of 1949 makes RBI the regulator of the banks in India.
RBI has the power to make rules and regulations to promote a sound banking system in India and safeguard the interests of the depositors. If any regulated banks do not follow the rules of RBI, then the RBI has the power to fine the banks or, in extreme cases, cancel the bank's license.
Fine on Bank of India and Bandhan Bank
The Bank of India was fined Rs 1.4 crore for not complying with the RBI’s provisions regarding 'interest rate on deposits', 'customer service in banks', and' interest rate on advances' and contravening the Credit Information Companies Rules, 2006.
The Bandhan Bank was fined Rs 29.55 lakh for non-compliance with certain directions.
Regulation of Banks in India
The Banking Regulation Act 1949 makes RBI the regulator of the Banking sector in India.
The RBI regulates all public-sector banks, private-sector banks, Foreign banks, Regional Rural Banks, Payment Banks, Small Finance Banks, and Local Area Banks.
RBI also regulates Non-Banking Financial Companies (NBFC) under the provision of the Reserve Bank of India Act 1934.
Bank of India
The Bank of India was established in 1906 in Mumbai by a group of businessmen.
It was established as a private sector bank, which was nationalised by the government of India in 1969.
It is now a public sector bank owned by the government of India.
The bank has over 5100 branches and has 45 branches/offices outside India.
Chairman of the Bank: M.R.Kumar
Managing Director and CEO: Rajneesh Karnatak
Headquarters: Mumbai, Maharashtra
Tagline: Relationship Beyond Banking.
Bandhan Bank
Bandhan Bank is a private-sector bank that started as an NGO and was later converted into an NBFC -MFI(Micro Financial institution).
The bank was converted into a commercial bank in 2015.
The Bank’s Headquarters: Kolkata
MD and CEO: Chandra Shekhar Ghosh
Tagline: Aapka Bhala. Sabki Bhala
