Delhi: The Reserve Bank of India (RBI) has imposed a penalty of ₹91 lakh on HDFC Bank for breaching provisions of the Banking Regulation Act, including deficiencies in Know Your Customer (KYC) compliance and related regulatory directives.
The fine addresses multiple violations uncovered during a statutory inspection evaluating the bank’s financial position as of March 31, 2024, such as non-adherence to interest rate guidelines on advances, inadequate risk management in outsourced financial services, and failure to assign unique customer identification codes while categorizing clients by risk levels.
RBI issued a show-cause notice following these findings, and after reviewing HDFC Bank’s response and additional submissions, determined the charges warranted monetary action.
