₹42.60 Lakh Penalty on Bandhan Bank, Muthoot Housing Finance Company
Moneylife Digital Team 27 April 2026
Reserve Bank of India (RBI) has imposed penalties of ₹42.60 lakh on Bandhan Bank Ltd and Muthoot Housing Finance Company Ltd, a housing finance company (HFC), for non-compliance with the directions issued by the banking regulator. The highest penalty of ₹41.80 has been imposed on Bandhan Bank.
 
Muthoot Housing Finance Company has been penalised ₹80,000 
 
Bandhan Bank has been penalised for violating the provisions of Section 20(1)(b)(iii) of the Banking Regulation Act (BR Act) 1949 and for failing to comply with certain RBI directions related to know-your-customer (KYC) norms.
 
RBI’s statutory inspection found that Bandhan Bank failed to conduct periodic reviews of risk categorisation for certain categories of accounts. It also noted that the lender had sanctioned loans related to its directors.
 
Muthoot Housing Finance has been penalised for non-compliance with RBI’s directions on the fair practices code. RBI found that the non-banking finance company (NBFC) failed to disclose its approach to risk gradation and the rationale for charging different interest rates to different categories of borrowers in both the application forms and the sanction letters.
 
In both cases, RBI says penalties are based on deficiencies in regulatory compliance and are not intended to pronounce on the validity of any transaction or agreement they entered into with their customers.
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