RBI imposes penalty on Bank of India, Bandhan Bank

Current Context: The Reserve Bank of India (RBI) has imposed penalties on both Bank of India and Bandhan Bank for non-compliance with certain regulatory norms.

• Bank of India was fined ₹1.4 crore for violating the RBI’s directions on interest rates, customer service, and provisions of Credit Information Companies Rules, 2006.
• Bandhan Bank was penalized ₹29.55 lakh for non-compliance with certain directions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016’.
• The charge pertaining to opening of savings deposit account of an ineligible entity was sustained.
• These penalties were imposed after the RBI conducted a statutory inspection to evaluate the banks’ financial positions.
• It’s important to note that these penalties are for regulatory compliance issues and do not question the validity of any transactions or agreements with customers.
• The RBI aims to ensure that banks and financial institutions adhere to the necessary regulations to maintain transparency and protect the interests of customers.

Question:

Q.1 Which bank was fined by the RBI for violating directions on interest rates, customer service, and provisions of Credit Information Companies Rules, 2006?
a. Bandhan Bank
b. Bank of India
c. State Bank of India
d. HDFC Bank