Page 7 - Banking Finance October 2025

RBI CORNER

RBI fines Bandhan Bank

Rs. 44.7 lakh for regulatory
non-compliance
The Reserve Bank of India has imposed
a monetary penalty of Rs. 44.7 lakh on
Bandhan Bank for failing to comply
with specific statutory and regulatory
requirements. The action follows a su- Ò»©­
pervisory evaluation based on the
bank's financials as of March 31, 2024.
According to RBI, Bandhan Bank vio-
lated norms by paying employee com-
missions and altering data manually
through backend intervention. The Banks free to set minimum balance rules, says RBI
bank also failed to maintain proper
audit trails or user-specific logs while Governor Malhotra
accessing certain account details. RBI Governor Sanjay Malhotra has confirmed that the regulator does not
impose any minimum balance requirement on banks, leaving the decision
After issuing a show-cause notice and
entirely to individual institutions. Banks can set their own thresholds-rang-
reviewing the bank's response, RBI
concluded that the violations war- ing from Rs. 2,000 to Rs. 50,000-based on internal strategies.
ranted penal action. The central bank His comment came in response to ICICI Bank's recent revision, raising the
clarified that this penalty pertains minimum balance for certain new savings accounts to Rs. 50,000. However,
strictly to compliance issues and not the change does not affect statutory accounts like salary or basic savings
the quality of customer service or accounts.
banking operations. Malhotra was speaking at a financial inclusion camp in Mehsana, Gujarat,
This move underscores RBI's commit- reviewing the re-KYC and enrolment drive. Over 1.41 lakh such camps have
ment to ensuring high standards in in- been held since July, covering 35 lakh accounts.
ternal control systems, data handling Banking experts recommend that customers-especially those with modest
protocols, and audit transparency balances-choose zero or low-balance accounts to avoid additional charges.
across the banking ecosystem. Meanwhile, banks are using differentiated products to improve CASA ratios
and reduce cost pressures amid tightening liquidity.
RBI cuts US Treasury expo-

sure, boosts gold reserves Department of Treasury data. During external position and mitigates vulner-
this period, gold's share in India's forex abilities from overdependence on US-
in de-risking move reserves jumped from 8% to 12%. denominated assets.
In a strategic portfolio shift, the Re- Analysts say this reflects a growing glo-
serve Bank of India has reduced its bal trend of de-dollarisation amid geo- Rural India trails urban
holdings of US Treasury securities by political risks, US tariff policies, and con-
$14.5 billion over the past year, while cerns over rising US debt. Gold is being centres in credit and de-
increasing its gold reserves significantly preferred as a safer hedge against in- posits over 25 years: RBI
by 57.49 tonnes to a total of 879.59 flation and currency volatility. Over the last 25 years, rural India has
tonnes. Despite this realignment, India's over- lagged behind urban and metro re-

RBI's US Treasury exposure fell from all forex reserves remain strong at gions in both credit disbursal and de-
$241.9 billion in June 2024 to $227.4 $690.7 billion. Experts believe this pru- posit mobilisation, according to Re-
billion in June 2025, according to US dent diversification strengthens India's serve Bank of India data. While rural

BANKING FINANCE | OCTOBER | 2025 | 7