The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹75.00 lakh on HDFC Bank Limited for non-compliance with certain directions issued by RBI on Know Your Customer (KYC).
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| RBI Imposes Rs 75 lakh Penalty on HDFC Bank |
RBI Imposes ₹75 lakh Penalty on HDFC Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹75.00 lakh (Rupees Seventy Five Lakh only) on HDFC Bank Limited for non-compliance with certain directions issued by RBI on Know Your Customer (KYC).
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This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹68.20 lakh on Punjab & Sind Bank.
RBI Imposes Penalty on HDFC Bank: Background
The Statutory Inspection for Supervisory Evaluation (ISE 2023) of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
- The bank did not categorise certain customers into low, medium or high risk categories based on its assessment and risk perception.
- The bank allotted multiple customer identification codes to certain customers instead of a Unique Customer ldentification Code (UCIC) for each customer.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M.D. Patra
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
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Static Current Affairs related to HDFC Bank for upcoming exams
- Formation: August 1994
- Headquarters: Mumbai, Maharashtra
- Chairman: Atanu Chakraborty
- Chief Executive Officer (CEO): Sashidhar Jagdishan
- Number of employees: 213,527 (2024)
- Number of branches: 9,092 branches
- Number of ATMs: 20,993 ATMs
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