RBI lifted its ban from Bandhan Bank

bandhan bank

The Reserve bank of India on Tuesday lifted its ban on Bandhan Bank, allowing it to open new branches without prior permission after considering the efforts made by the Bank to comply with the licensing conditions on 25 February. 

In September 2018, RBI had said that Bandhan Bank cannot open new branches without prior approval and ordered the bank to freeze the salary of its chief executive Chandra Shekhar Ghosh over its failure to meet shareholding rules.

The Bank failed to reduce the promoters' stake to 40% from close to 82% within the stipulated three-year time frame of commencing operations.

But considering the efforts made by the Bank to comply with the licensing condition, it has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that atleast 25 % of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.

About RBI

The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India.

RBI established on 1st April, 1935 and its governor is Shaktikanta Das.

Its  headquarter is located at Mumbai.

About Bandhan Bank

Bandhan Bank Ltd. is an Indian banking and financial services company and its headquarter is in Kolkata, West Bengal.

Founder and CEO is Chandra Shekhar Ghoah.

Chairperson is Anup Kumar Sinha.