RBI imposed a fine of Rs 44.7 lakh on Bandhan Bank, action has been taken for giving commission to employees and making changes in account data without records. Customers will not be affected.
RBI Action: The Reserve Bank of India (RBI) has imposed a fine of Rs 44.7 lakh on Bandhan Bank. This fine has been imposed due to non-compliance of certain legal and regulatory rules by the bank. RBI investigated the bank, in which it was found that the bank gave money to some employees as commission and made changes in the data of some accounts without proper records.
This investigation was done on the basis of the financial position of the bank as on March 31, 2024. RBI found in its investigation that Bandhan Bank has violated some rules. The bank gave money to some of its employees as commission, which is against RBI rules.
RBI had earlier also sent notice to the bank
Apart from this, the bank made changes in the data of some accounts from the back-end, but did not keep any proper record or audit trail of these changes. Let us tell you that audit trail means that an account has to be kept of which employee is making changes in the data, when and how. Bandhan Bank did not do this, due to which RBI had to take strict action.
RBI first sent a notice to the bank and asked why a fine should not be imposed for breaking the rules. The bank gave its reply, but RBI felt that the mistakes were clearly visible. Therefore, a fine of Rs 44.7 lakh was imposed. RBI also clarified that this fine is only due to non-compliance of the rules. This does not mean that the bank has done anything wrong in any transaction or agreement made with its customers. That is, this fine is for the flaws in the functioning of the bank, not to prove its business with the customers wrong.
However, RBI said that this fine is based on deficiencies in statutory and regulatory compliance. It is not intended to question the validity of any transaction or agreement entered into by the Bank with its customers.
Will it affect your account?
Bandhan Bank is a big private bank, which is known for giving loans to small businesses and common people. But such mistakes can affect the credibility of the bank. RBI’s job is to keep an eye on the banks and ensure that they follow the rules, so that the trust of the customers remains intact. If you are a customer of Bandhan Bank, then there is no need to panic. This fine is for some internal mistakes of the bank and it will not have any direct effect on your accounts or transactions. But its effect on the bank’s shares can be seen on Monday.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
