HDFC Bank Faces Regulatory Setback in Dubai

HDFC Bank has been restricted from onboarding new customers at its Dubai branch by the Dubai Financial Services Authority due to unspecified alleged violations. The bank claims no significant impact from this restriction. Existing customers will continue to be serviced, and the bank is taking corrective measures.

HDFC Bank has encountered a regulatory hurdle as it faces a bar on onboarding new clients at its Dubai International Financial Centre branch, according to a decision by the Dubai Financial Services Authority.

India's largest private-sector lender has stated its commitment to resolving the issue, emphasizing that it does not anticipate any substantial impact from the regulatory action.

The specifics of the alleged infractions remain unclear, but HDFC Bank is focused on compliance and working closely with the DFSA to address their concerns while continuing to service its existing client base at the branch.

(With inputs from agencies.)