RBI Imposes Rs44.70 Lakh Penalty on Bandhan Bank
Moneylife Digital Team 01 September 2025
Reserve Bank of India (RBI) has imposed a penalty of Rs44.70 lakh on Bandhan Bank Ltd for contravention of section 10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act) and non-compliance with directions issued by RBI on automation of income recognition, asset classification and provisioning processes in banks.
 
RBI statutory inspection of revealed that Bandhan Bank had paid remuneration to certain employees in the form of commission. The inspection also found that the lender carried out manual interventions on the back-end for certain account data, but did not capture audit trails or logs showing specific user access in the system.
 
After considering Bandhan Bank’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI says the charges against the lender are sustained, warranting the imposition of a monetary penalty.
 
However, the banking regulator clarified that its action against Bandhan Bank is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transactions or agreements entered into by the Bank with its customers. Further, imposition of a monetary penalty is without prejudice to any other action that may be initiated against the Bank, RBI added.
 
Comments
abhay1955
7 months ago
The issue seems to be much more serious that as it appears. I am particularly focusing on the manual interventions through back-end for certain account data. Yes, sometimes it is necessary to make certain corrections through back-end when some exceptions occur halting the operations or some corrections are not possible through menu. At that time records are updated through back-end. But system generates logs for every such correction and a responsible officer other than the one who made corrections, has to authenticate. But if it was genuinely necessary, why audit trails or logs were not captured? What if in future data of depositors is manipulated?
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