Kolkata: The Reserve Bank of India on Friday pulled out its general permission to open new branches from a private-lender Bandhan bank. The RBI also froze the remuneration of Bandhan Bank’s MD and CEO Chandra Shekhar Ghosh till further notice as it failed to comply with a licensing condition. Also Read - What is RBI's 3-Month Moratorium? Will EMI be Deducted From Your Account? Here Are Your Answers

“RBI has communicated to us that since the Bank was not able to bring down the shareholding of Non Operative Financial Holding Company (NOFHC) to 40 per cent, as required under the licensing condition, general permission to open new branches stands withdrawn and the Bank can open branches with prior approval of RBI and the remuneration of the MD & CEO of the Bank stands frozen at the existing level, till further notice,” the lender said in a regulatory filing. Also Read - How RBI Set up War Room in Just One Day Amid Coronavirus Outbreak

The Bandhan bank is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the Bank to 40 per cent and shall continue to engage with the RBI in this regard, it added. Also Read - New Rules For Debit And Credit Cards Kick in From Monday