The Reserve Bank of India (RBI) on Tuesday imposed Rs1 crore penalty on Bandhan Bank for non-compliance with promoter holding norms, contained in the licencing guidelines.
Under the guidelines, the bank was required to bring down shareholding of its "non-operative financial holding company" to 40% of its paid-up equity capital within three years from the date of start of business.
However, as the bank failed to comply with the licencing guidelines, a show cause notice was issued asking why a penalty should not be imposed for the non-compliance, the RBI said in a statement on Tuesday.
"After considering the reply received from the bank, submissions made during personal hearing and documents submitted, the RBI came to the conclusion that the bank had failed to comply with the licencing guidelines and decided to impose the penalty," the banking regulator said.
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