Tuesday, Aug 04, 2020 | Last Update : 11:31 PM IST

133rd Day Of Lockdown

Maharashtra45019628703015842 Tamil Nadu2632222022834241 Andhra Pradesh166586886781537 Karnataka139571625002594 Delhi1384821242544021 Uttar Pradesh97362553931778 West Bengal78232548181731 Telangana6766048609551 Gujarat64684476632504 Bihar5956738508336 Rajasthan4555532051719 Assam4527633429109 Haryana3717330470440 Odisha3629723074248 Madhya Pradesh3428524099900 Kerala268731527885 Jammu and Kashmir2200614032407 Punjab1852711882442 Jharkhand135004794125 Chhatisgarh9820725661 Uttarakhand7800453890 Goa6816487656 Tripura5389360527 Puducherry3982241156 Manipur292017667 Himachal Pradesh2818165813 Nagaland21296574 Arunachal Pradesh175810633 Chandigarh116070619 Meghalaya9022645 Sikkim6882971 Mizoram4962660
  Business   Companies  30 Jan 2020  RBI imposes Rs 1 crore penalty on HDFC Bank

RBI imposes Rs 1 crore penalty on HDFC Bank

ANI
Published : Jan 30, 2020, 1:54 pm IST
Updated : Jan 30, 2020, 1:55 pm IST

A notice was issued to the private lender to show cause as to why penalty should not be imposed for non-compliance with the direction.

The RBI said HDFC Bank failed to exercise ongoing due diligence in those accounts.
 The RBI said HDFC Bank failed to exercise ongoing due diligence in those accounts.

Mumbai: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs one crore on HDFC Bank for non-compliance of Know Your Customer (KYC) norms.

"The penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act 1949, taking into account the failure of the bank to adhere to the aforesaid direction issued by RBI," said the central bank in a statement.

 

This action is based on the 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, the RBI added.

It had made observations following an on-site inspection for supervisory evaluation of HDFC Bank for the financial year ended March 31, 2017. A scrutiny of 39 current accounts opened by its customers for bidding in initial public offer was conducted.

The RBI said HDFC Bank failed to exercise ongoing due diligence in those accounts. "It was observed that the transactions effected in these current accounts were disproportionate to the declared income and profile of the customers."

 

A notice was issued to the private lender to show cause as to why penalty should not be imposed for non-compliance with the direction.

After considering the reply received from the bank and oral submissions made in the personal hearing, RBI came to the conclusion that the charge of non-compliance with the direction was sustained and warranted imposition of monetary penalty.

Tags: rbi, penalty, hdfc bank
Location: India, Maharashtra, Mumbai (Bombay)