RBI Slaps Rs 31.8 Lakh Penalty on HSBC for Regulatory Lapses

The Reserve Bank of India has imposed a penalty of Rs 31.8 lakh on Hongkong and Shanghai Banking Corporation for not complying with regulations regarding inoperative accounts and unclaimed deposits. This action follows a supervisory evaluation of the bank's financial practices, identifying significant omissions in adherence to statutory rules.

The Reserve Bank of India (RBI) has imposed a Rs 31.8 lakh penalty on Hongkong and Shanghai Banking Corporation (HSBC) for failing to comply with specific regulatory directions concerning inoperative accounts and unclaimed deposits.

A statutory inspection for supervisory evaluation of HSBC was performed, taking into account its financial position as of March 31, 2025. This inspection revealed non-compliance with several of RBI's directives, prompting regulatory action.

The central bank stated this penalty emphasizes deficiencies in regulatory adherence and is not a judgment on any transaction validity within HSBC's customer agreements. While this penalty is significant, the RBI clarified that it may take further action if necessary.

(With inputs from agencies.)