The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 4.20 lakh (Rupees Four lakh twenty thousand only) on HDB Financial Services Limited for non-compliance with certain provisions of the Reserve Bank of India [Know Your Customer (KYC)] Directions, 2016 issued by RBI.
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| RBI Imposes Rs 4.2 lakh Penalty on HDB Financial Services |
RBI Imposes ₹4.2 lakh Penalty on HDB Financial Services
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹4.20 lakh on HDB Financial Services Limited for non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 issued by RBI.
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This penalty has been imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
Apart from this, the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 31.80 lakh on American Express Banking Corp.
RBI Imposes Penalty on HDB Financial Services
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:
- The HDB Financial Services failed to obtain Permanent Account Number (PAN) or equivalent e-document thereof or Form No. 60 in certain loan accounts disbursed during FY 2023-24.
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 company. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
Read Also: RBI Imposes Rs 75 lakh Penalty on HDFC Bank
About HDB Financial Services
HDB Financial Services (HDBFS) is a leading Non-Banking Financial Company (NBFC) that caters to the growing needs of an Aspirational India, serving both Individual & Business Clients. The HDB Financial Services Limited is a subsidiary company of HDFC Bank.
The HDB Financial Services was incorporated in 2007, we are a well-established business with strong capitalization. HDBFS is accredited with CARE AAA & CRISIL AAA ratings for its long-term debt & Bank facilities and an A1+ rating for its short-term debt & commercial papers, making it a strong and reliable financial institution.
Vision of HDB Financial Services
The vision of HDB Financial Services is to be India’s most admired NBFC; through Great Execution, Driving Simplicity & Developing Humility.
Mission of HDB Financial Services
The mission of HDB Financial Services is to deliver innovative products and services to cater to the growing needs of an aspirational India, serving both Individual & Business Clients.
About 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. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to HDB Financial Services for upcoming exams
- Incorporated: 2007
- Chairman : Arijit Basu
- MD & CEO: Ramesh Ganesan
- Non-Executive Director: Jimmy Tata
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