Current context: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on Bandhan Bank Limited, by an order dated 29th October 2019.
a. Frauds classification
b. Asset Classification
c. Promoter Holding
d. Income Registration
- The penalty has been imposed for the for non-compliance with the guidelines on promoter holding contained in ‘Guidelines for Licensing of New Banks in Private Sector’, read with the conditions imposed by RBI in exercise of powers under section 22 of the Banking Regulation Act, 1949.
- RBI is vested with powers under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 to impose the penalty.
- As per the licencing guidelines, the bank was required to bring down the shareholding of its Non-Operative Financial Holding Company in the bank in excess of 40% of the total paid-up equity capital to 40% within 3 years from the date of commencement of business of the bank.
Question:
Q.1 The penalty of Rs 1 crore was recently imposed on the Bandhan Bank Limited by RBI for non-compliance with the guidelines on ______?a. Frauds classification
b. Asset Classification
c. Promoter Holding
d. Income Registration
