HDFC Bank Faces Rs 91 Lakh Penalty for Regulatory Violations

HDFC Bank has been fined Rs 91 lakh by the RBI for non-compliance with various banking regulations, including KYC norms and other statutory requirements. The penalty stems from deficiencies in regulatory compliance, identified during a supervisory evaluation of the bank's financial position as of March 31, 2024.

The Reserve Bank of India (RBI) has levied a hefty penalty of Rs 91 lakh on HDFC Bank, citing deficiencies in regulatory and statutory compliance, a move aimed at reinforcing adherence to banking norms.

The penalty arises from contraventions of the Banking Regulation Act, particularly with the Know Your Customer (KYC) standards and regulatory guidelines on interest rates, risk management, and outsourcing of financial services. Notably, discrepancies were found during a supervisory evaluation of HDFC's financials as of March 31, 2024.

While acknowledging the bank's response and additional submissions, the RBI validated the violations, justifying the penalty. However, the central bank clarified that the fine strictly pertains to regulatory lapses and does not affect any customer agreements.

(With inputs from agencies.)