The Reserve Bank of India (RBI) barred Bandhan Bank from opening new branches and also ordered freezing of the bank’s CEO salary over failure to stick to shareholding rules.
The Bank was not able to bring down the shareholding of Non-Operative Financial Holding Company (NOFHC) to 40% as required under the licensing condition, general permission to open new branches stands withdrawn.
Source- The Economic Times
Static/Current Takeaways Important for Indian Bank PO Exam 2018-
- As per the bank’s website, it has 937 branches in parts of the country. The Bandhan, a MFI, was given conditional approval by the RBI for setting up universal bank in April 2014.
- The bank operational in 2015. Headquartered in Kolkata, Bandhan, which started as a micro-finance company in 2001, received banking licence by Reserve Bank of India in 2014.