RBI IMPOSES A PENALTY OF Rs. 9.1 MILLION ON HDFC BANK

RBI IMPOSES A PENALTY OF Rs. 9.1 MILLION ON HDFC BANK

29-NOV-ENG 1

RAJIV NAYAN AGRAWAL

DELHI---------------------------The Reserve Bank of India (RBI) has imposed a penalty of ₹9.1 million on private sector HDFC Bank for violating certain regulations under the Banking Regulation Act. The penalty was imposed for deficiencies in the bank's legal and regulatory obligations related to "Know Your Customer" (KYC).

In a statement, the RBI said that the penalty was imposed on HDFC Bank for violating certain regulations under the Banking Regulation Act, including non-compliance with the interest rate requirements on loans, non-compliance with the Guidelines on Risk Management and Code of Conduct for Financial Services, and certain KYC-related instructions.

The Reserve Bank stated that a statutory audit was conducted to assess the bank's financial position as of March 31, 2024. A notice was issued to the bank in this regard.

The central bank said that after considering the bank's reply and the additional information provided by it, the Reserve Bank found that the allegations against the bank were substantiated and warranted imposition of monetary penalty.