The Reserve Bank of India (RBI) fined HDFC Bank Rs 91 lakh for breaking rules about Know Your Customer (KYC), interest rates, and outsourcing. On Friday, RBI performed a Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank, looking at its financial status as of March 31, 2024.
RBI punish HDFC bank with Rs 91 lakh penalty
RBI said that, based on their findings, the bank failed to follow the BR Act, rules, and related communications. They issued a notice to the bank asking why a penalty should not be imposed for this lack of compliance.
The bank had set various benchmarks in the same loan category. Additionally, one of its wholly owned subsidiaries engaged in activities not allowed under Section 6 of the BR Act. The bank also outsourced the task of checking compliance with KYC norms for some customers to its third-party agents.
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