Bandhan Bank has been penalized by the Reserve Bank of India with an aggregate monetary penalty of Rs 41.80 lakh following regulatory violations identified during a statutory inspection. The bank disclosed this development on April 24, 2026, through an official communication to stock exchanges in compliance with SEBI listing regulations.

Penalty Details and Regulatory Action

The RBI imposed the penalty through an order dated April 21, 2026, exercising powers under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalty stems from findings during the bank's statutory inspection for supervisory evaluation conducted with reference to its financial position as on March 31, 2025.

Violations Identified

The regulatory action addresses two specific areas of non-compliance identified during the supervisory evaluation:

• Banking Regulation Act Violation: Contravention of Section 20(1)(b)(iii) of the Banking Regulation Act, 1949, attracting a penalty of Rs 31.80 lakh
• KYC Compliance Failure: Non-compliance with RBI directions on 'Know Your Customer' requirements, specifically regarding periodic review of risk categorization of certain categories of accounts, resulting in a penalty of Rs 10.00 lakh

Official Disclosure Framework

The bank communicated the penalty details to BSE Limited and National Stock Exchange of India Limited through reference number BBL/SEC/18/2026-27. The disclosure was made pursuant to Regulation 30 and other applicable provisions of SEBI LODR, following the receipt of RBI's communication on April 24, 2026.

Impact Assessment and Compliance

Bandhan Bank has stated that the penalty will not have any material impact on its financial, operational, or other activities. The bank emphasized that this is a regulatory compliance matter stemming from supervisory findings and does not affect its core business operations or financial performance. The complete disclosure has been made available on the bank's official website at www.bandhan.bank.in as part of transparency requirements under SEBI regulations.

The penalty order follows the standard regulatory process where RBI conducts statutory inspections to evaluate banks' compliance with various banking regulations and guidelines, ensuring adherence to prescribed norms for customer due diligence and risk management practices.

Bandhan Bank Limited has issued comprehensive notices to shareholders regarding the mandatory transfer of unclaimed equity shares to the Investor Education and Protection Fund (IEPF) Authority, marking a significant compliance initiative under the Companies Act, 2013.

Regulatory Compliance and Notice Publication

On April 24, 2026, the bank published detailed notices in leading newspapers to comply with Section 124(6) of the Companies Act, 2013, read with the IEPF Authority Rules, 2016. The notices appeared in multiple languages and publications to ensure maximum reach:

The bank has sent individual reminders to concerned shareholders at their latest registered addresses, informing them about the impending transfer of their shares to the IEPF Authority and requesting them to claim their unclaimed dividends before the specified deadlines.

Share Transfer Timeline and Criteria

Equity shares are subject to transfer to the IEPF Authority if dividends remain unpaid or unclaimed for seven consecutive years or more. The bank has established specific deadlines for different categories:

Following the amalgamation of GRUH Finance Limited with Bandhan Bank effective October 17, 2019, all dividend-related claims for the erstwhile GRUH must now be made with Bandhan Bank. Shareholders holding shares in either physical or dematerialized form are affected by these provisions.

'Saksham Niveshak' Campaign Launch

The IEPF Authority has advised companies to initiate a second 100-day campaign titled "Saksham Niveshak" from April 01, 2026 to July 09, 2026. This campaign focuses on several key objectives:

• Proactive Engagement: Reaching out to shareholders to update KYC, bank mandates, and contact information
• Timely Dividend Processing: Ensuring swift processing of dividend claims and related requests
• Prevention of Unnecessary Transfers: Avoiding share transfers to IEPF Authority through proper claim procedures
• Direct Claim Settlement: Enabling shareholders to receive rightful claims directly from the company

Bandhan Bank has already communicated with shareholders who have unclaimed dividends for seven consecutive years, emphasizing the importance of updating their KYC details, bank mandates, and contact information to receive dividends directly in their bank accounts.

Special Window for Physical Share Transfer

SEBI has introduced a special facility through its circular dated January 30, 2026, establishing a one-year window for physical securities management:

This initiative aims to facilitate the transfer and dematerialization of physical securities and address previously rejected transfer requests due to documentation deficiencies or procedural issues.

Shareholder Action Requirements

Shareholders are advised to take immediate action to avoid automatic transfer of their shares to the IEPF Authority. The bank has provided clear contact information for both Bandhan Bank Limited's Secretarial Department in Kolkata and KFin Technologies Limited, the bank's Registrar and Share Transfer Agent in Hyderabad.

For claim procedures, shareholders must follow the prescribed process under IEPF Rules, including filing Form IEPF-5 online along with requisite documentation. The bank has also established email communication channels at investors@bandhanbank.com for expedited processing of claims and document submission.