RBI Imposes ₹1 Crore Penalty on HDFC Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,00,00,000 (Rupees One crore only) on HDFC Bank mfor non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Recovery Agents engaged by Banks’.

RBI Imposes ₹1 Crore Penalty on HDFC Bank

RBI Imposes Rs 1 Crore Penalty on HDFC Bank

RBI Imposes Penalty on HDFC Bank: The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1,00,00,000 (Rupees One crore) on HDFC Bank Limited for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Recovery Agents engaged by Banks’ and ‘Customer Service in Banks’ read with the BCSBI Code and ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’.

Apart from this, RBI has imposed a fine of Rs. 1.91 crore on Axis Bank.

RBI Imposes Penalty on HDFC Bank: Background

The Statutory Inspection for Supervisory Evaluation (ISE 2022) of the bank was conducted by RBI with reference to its financial position as on March 31, 2022.

The RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty.

• The bank gave gifts (in the form of paying first-year premium for the complimentary life insurance cover) costing more than ₹250 to the depositors at the time of accepting certain deposits.
• The bank opened certain savings deposit accounts in the name of ineligible entities.
• The bank failed to ensure that customers are not contacted after 7 pm and before 7 am.

Static Current Affairs related to HDFC Bank for upcoming exams

• Formation: August 1994
• Headquarters: Mumbai, Maharashtra
• Number of Branches: 8,851
• Number of ATMs: 20,938
• Chairman: Atanu Chakraborty
• Chief Executive Officer (CEO): Sashidhar Jagdishan