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RBI imposes Rs 10 crore fine on HDFC Bank

NEW DELHI: The Reserve Bank of India (RBI) on Friday imposed Rs 10 crore fine on HDFC Bank for contravention of certain provisions of the Banking Regulation Act, 1949.
In an official statement, the central bank said that the action is based on deficiencies in regulatory compliance and will in no way impact its dealing with customers.
“The action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” the RBI said.
The penalty has been imposed in exercise of powers vested in the RBI under provisions of section 47A(1)(c) read with section 46(4)(i) of the Act, the statement further said.
While examining documents in the matter of marketing and sale of third-party non-financial products to the bank’s customers, arising from a whistle blower complaint regarding irregularities in the auto loan portfolio of the bank, the Reserve Bank found contravention of the above mentioned provisions.
“In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the provisions of the Act/directions,” the statement added.

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