 "A HDFC Bank Ltd. bank branch in Mumbai")
The Reserve Bank of India (RBI) on Friday imposed a Rs 91 lakh penalty on HDFC Bank for violation of norms related to Know Your Customer (KYC), interest rate and outsourcing compliance.
RBI had conducted Statutory Inspection for Supervisory Evaluation (ISE 2024) of the bank with reference to the lender’s financial position as on March 31, 2024.
RBI said, “Based on supervisory findings, non-compliance with the provisions of the BR Act, RBI directions and related correspondence in that regard, a notice was issued to the bank by the RBI advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said provisions of the BR Act and RBI directions.”
The bank had adopted multiple benchmarks within the same loan category; a wholly owned subsidiary of the bank undertook business which is not a permissible business that can be undertaken by a banking company under Section 6 of the BR Act.
The bank had also outsourced the function of determining compliance with KYC norms of certain customers to its outsourcing agents.
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 "C S Setty, Challa Sreenivasulu Setty, Chairman, State Bank of India (SBI) (Photo: Kamlesh Pednekar)")
 "CS Setty, Challa Sreenivasulu Setty, Challa Sreenivasulu, SBI Chairman")
 "Reserve Bank of India, RBI")
