Reserve Bank of India imposes monetary penalty on Bandhan Bank Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty of Rs 41.80 lakh on Bandhan Bank Limited by order dated April 21, 2026. RBI said the penalty was for contravention of section 20(1)(b)(iii) of the Banking Regulation Act, 1949 and non-compliance with certain RBI directions on Know Your Customer. After a statutory inspection and a show-cause process, RBI sustained charges that the bank had failed to periodically review the risk categorisation of certain accounts and had sanctioned director-related loans. The penalty was imposed under section 47A(1)(c) read with section 46(4) of the BR Act.