Bandhan Bank Guide 2026: Savings Account, Fixed Deposit, Loan Process & Digital Banking

Bandhan Bank: A Complete Guide to Products, Loans, Forex & Business Banking, Retail Services, FAQs, MCQs, and Short Notes

Bandhan Bank is one of India’s most successful and socially impactful private sector banks. Known for its strong roots in financial inclusion and microfinance, Bandhan Bank has transformed millions of lives by bringing formal banking services to underserved and unbanked sections of society. From humble beginnings as a microfinance institution, the bank has evolved into a full-fledged universal bank offering a wide range of deposit products, retail banking services, loans, MSME and business banking solutions, digital banking, and limited foreign exchange (forex) services.

Established with the vision of inclusive growth, Bandhan Bank bridges the gap between traditional banking and grassroots financial needs. Today, it serves customers across urban, semi-urban, and rural India, with a strong presence in eastern and northeastern states.

This article presents a detailed, structured, and SEO-optimized overview of Bandhan Bank, including its history, evolution, products, loan processes (step by step), business and forex offerings, digital services, FAQs, MCQs, and short notes.

2. History and Evolution of Bandhan Bank

2.1 Origin as a Microfinance Institution

Bandhan began its journey in 2001 as a microfinance institution (MFI) founded by Chandra Shekhar Ghosh. The organization focused on providing small loans to economically weaker sections, especially women, to promote self-employment and financial independence.

2.2 Transition to a Universal Bank

In 2014, Bandhan received a banking license from the Reserve Bank of India (RBI) under its new bank licensing policy. Bandhan Bank officially commenced operations as a universal bank on 23 August 2015.

This transition marked a historic milestone:

• It was the first MFI in India to become a universal bank.

• It retained its microfinance strength while expanding into retail and corporate banking.

3. Vision, Mission, and Core Values

Vision

To deliver world-class banking services to the underbanked and unbanked while maintaining strong financial performance.

Mission

To combine financial inclusion with sustainable banking by offering simple, affordable, and transparent financial products.

Core Values

• Inclusiveness

• Integrity

• Customer-centricity

• Simplicity

• Responsible growth

4. Branch Network and Reach

Bandhan Bank has one of the largest branch and outlet networks among new-age private banks.

Key Highlights

• Thousands of banking outlets across India

• Strong presence in rural and semi-urban areas

• Significant penetration in eastern, northeastern, and central India

• Growing urban footprint

This wide network supports Bandhan Bank’s mission of inclusive banking.

5. Deposit Products of Bandhan Bank

Deposit products are the backbone of any bank. Bandhan Bank offers a comprehensive range of deposit schemes designed for individuals, families, and businesses.

5.1 Savings Accounts

Bandhan Bank provides multiple types of savings accounts to meet diverse needs.

Types of Savings Accounts

• Regular Savings Account

• Zero Balance Savings Account (Basic Savings Bank Deposit Account)

• Salary Account

• Senior Citizen Savings Account

• Student and Minor Accounts

Key Features

• Competitive interest rates

• Debit card facility

• Free ATM withdrawals (as per policy)

• Internet and mobile banking

• NEFT, RTGS, IMPS, and UPI transfers

5.2 Current Accounts

Current accounts are tailored for businesses, traders, and professionals.

Features

• High transaction limits

• Cash deposit and withdrawal facilities

• Cheque and digital payment support

• Overdraft options (subject to eligibility)

5.3 Fixed Deposits (FD)

Fixed deposits provide safe and predictable returns.

Features

• Flexible tenure (from a few days to several years)

• Attractive interest rates

• Higher rates for senior citizens

• Monthly/quarterly interest payout options

• Auto-renewal facility

5.4 Recurring Deposits (RD)

Recurring deposits encourage disciplined savings.

Features

• Monthly savings option

• Low minimum monthly deposit

• Flexible tenure

• Guaranteed maturity value

6. Retail Banking Products

Retail banking focuses on everyday financial needs of individuals and households.

6.1 Debit Cards

Bandhan Bank offers:

• RuPay / Visa debit cards

• ATM and POS usage

• Online and contactless payments

• Enhanced security features

6.2 Credit Cards

Bandhan Bank offers credit cards (directly or through partnerships) with features such as:

• Cashless payments

• Reward points

• EMI conversion

• Secure online transactions

6.3 Digital Banking Services

Digital Platforms

• Internet Banking

• Mobile Banking App

• UPI services

• SMS and email alerts

Benefits

• 24×7 access to accounts

• Online fund transfers

• Bill payments and recharges

• Reduced dependency on branches

7. Loan Products of Bandhan Bank

Bandhan Bank provides a wide range of loans catering to individuals, micro-entrepreneurs, MSMEs, and businesses.

7.1 Retail Loan Products

Common Retail Loans

• Personal Loans

• Home Loans

• Gold Loans

• Education Loans

• Vehicle Loans

7.2 Microfinance and Small Loans (Key Strength)

Bandhan Bank is best known for its microfinance loan portfolio, especially:

• Joint Liability Group (JLG) loans

• Loans to women entrepreneurs

• Small ticket income-generation loans

These loans empower borrowers to start or expand small businesses.

8. Step-by-Step Loan Application Process (Bandhan Bank)

Below is a clear step-by-step explanation of how loans are typically processed at Bandhan Bank.

Step 1: Select Loan Type

Choose the loan based on your requirement:

• Microfinance loan

• Personal loan

• Home loan

• Gold loan

• Business/MSME loan

Step 2: Check Eligibility

Eligibility is based on:

• Age criteria

• Income level

• Employment/business type

• Credit score (for retail loans)

• Group membership (for microfinance loans)

Step 3: Documentation

Common documents include:

• KYC (Aadhaar, PAN, voter ID, etc.)

• Address proof

• Income proof (if applicable)

• Bank statements

• Collateral documents (for secured loans)

Step 4: Application Submission

• Apply through branch or relationship officer

• Microfinance loans often involve field-level assessment

Step 5: Verification and Appraisal

• KYC verification

• Credit bureau check

• Income and repayment capacity assessment

• Group assessment (for JLG loans)

Step 6: Loan Sanction

Upon approval, the bank issues a sanction letter specifying:

• Loan amount

• Interest rate

• Repayment schedule

• Tenure

Step 7: Disbursement

• Loan amount credited to borrower’s account

• In some cases, amount is used directly for the intended purpose

Step 8: Repayment

• Weekly, monthly, or EMI-based repayment

• Digital and branch-based repayment options

9. Business Banking Products

Bandhan Bank offers business and MSME banking solutions, especially for small and medium enterprises.

9.1 MSME and Business Loans

Products Include

• Working capital loans

• Term loans

• Overdraft and cash credit facilities

• Small enterprise financing

9.2 Transaction Banking for Businesses

• Current accounts

• Digital payment acceptance

• Cash management services

10. Forex (FEX) and International Banking Products

Bandhan Bank’s forex and international banking services are selective and focused, compared to large legacy banks.

10.1 Forex Services

• Foreign currency exchange

• Outward and inward remittances

• Travel-related forex services

10.2 Trade and International Services

• Limited trade finance support (where applicable)

• Correspondent banking arrangements

• NRI services

11. Government Schemes and Financial Inclusion

Bandhan Bank actively participates in government initiatives such as:

• Pradhan Mantri Jan Dhan Yojana (PMJDY)

• Pradhan Mantri Mudra Yojana (PMMY)

• Direct Benefit Transfer (DBT)

• Social security and subsidy programs

12. Customer Service and Security

Customer Support

• Branch-level assistance

• Call centers and helplines

• Grievance redressal mechanism

Security Measures

• Two-factor authentication

• OTP-based transactions

• Secure digital platforms

13. Strengths, Challenges, and Future Outlook

Strengths

• Strong microfinance expertise

• Deep rural reach

• Customer trust and social impact

• Rapid growth trajectory

Challenges

• Asset quality risks in microfinance segment

• Competition from private banks and fintechs

• Regulatory changes

Future Outlook

Bandhan Bank aims to:

• Expand retail and MSME lending

• Strengthen digital banking

• Maintain leadership in financial inclusion

• Achieve balanced and sustainable growth

FAQs on Bandhan Bank

1. What is Bandhan Bank?
   Bandhan Bank is a private sector universal bank in India with strong roots in microfinance and financial inclusion.

2. When was Bandhan Bank established?
   It started as a bank in 2015 after operating as an MFI since 2001.

3. Is Bandhan Bank a government bank?
   No, it is a private sector bank regulated by RBI.

4. What deposit products does Bandhan Bank offer?
   Savings accounts, current accounts, fixed deposits, and recurring deposits.

5. Does Bandhan Bank provide microfinance loans?
   Yes, microfinance loans are its core strength.

6. Are home loans available at Bandhan Bank?
   Yes, Bandhan Bank offers home loans and other retail loans.

7. Does Bandhan Bank offer forex services?
   Yes, limited forex and remittance services are available.

8. Is digital banking available?
   Yes, via internet banking, mobile banking, and UPI.

9. Who regulates Bandhan Bank?
   The Reserve Bank of India (RBI).

10. What is Bandhan Bank’s main objective?
    Promoting financial inclusion along with sustainable banking growth.

MCQs on Bandhan Bank

1. Bandhan Bank started as a:
   A) Cooperative bank
   B) NBFC
   C) Microfinance institution
   D) Foreign bank
   ✅ Answer: C

2. Bandhan Bank became a universal bank in:
   A) 2010
   B) 2012
   C) 2014
   D) 2015
   ✅ Answer: D

3. Bandhan Bank is regulated by:
   A) SEBI
   B) RBI
   C) NABARD
   D) IRDAI
   ✅ Answer: B

4. Which segment is Bandhan Bank best known for?
   A) Investment banking
   B) Microfinance
   C) Offshore banking
   D) Merchant banking
   ✅ Answer: B

5. Fixed deposits are mainly meant for:
   A) High-risk trading
   B) Guaranteed returns
   C) Speculation
   D) Derivatives
   ✅ Answer: B

6. JLG loans are related to:
   A) Housing finance
   B) Corporate lending
   C) Microfinance
   D) Forex
   ✅ Answer: C

7. Which product supports regular savings?
   A) FD
   B) RD
   C) Current account
   D) Overdraft
   ✅ Answer: B

8. Forex services deal with:
   A) Domestic cash only
   B) Foreign exchange
   C) Insurance
   D) Mutual funds
   ✅ Answer: B

9. Bandhan Bank primarily focuses on:
   A) Only corporates
   B) Financial inclusion
   C) Only urban customers
   D) Stock trading
   ✅ Answer: B

10. Digital banking includes:
    A) Manual passbooks only
    B) Internet and mobile banking
    C) Cash-only services
    D) Paper-only transactions
    ✅ Answer: B

Short Notes on Bandhan Bank

1. Bandhan Bank – Overview

Bandhan Bank is a private sector bank known for its strong microfinance roots and commitment to financial inclusion.

2. Deposit Products

The bank offers savings, current, fixed, and recurring deposit schemes for individuals and businesses.

3. Retail Banking

Retail services include accounts, cards, digital banking, and personal loans.

4. Loan Process

Loan processing involves eligibility check, documentation, appraisal, sanction, disbursement, and repayment.

5. Microfinance Loans

Microfinance loans, especially to women entrepreneurs, are the core strength of Bandhan Bank.

6. Business Banking

Business loans and MSME finance support small enterprises and traders.

7. Forex Services

Bandhan Bank provides limited forex and remittance services.

8. Financial Inclusion

Bandhan Bank plays a major role in bringing unbanked populations into the formal banking system.