City
Epaper

RBI slaps Rs 75 lakh fine on HDFC Bank for breach of norms

By IANS | Updated: March 26, 2025 19:46 IST

Mumbai, March 26 The Reserve Bank of India (RBI) has imposed a penalty of Rs 75 lakh on ...

Open in App

Mumbai, March 26 The Reserve Bank of India (RBI) has imposed a penalty of Rs 75 lakh on HDFC Bank, the country’s largest private sector lender, for not complying with directions in the RBI’s Know Your Customer (KYC) master direction, according to an official statement issued on Wednesday.

After considering HDFC Bank's reply to a showcause notice for violation of norms and additional submissions made by it, THE RBI found, inter alia, that the charges against the bank were sustained, warranting imposition of monetary penalty.

The RBI found that the bank did not categorise certain customers into low, medium or high risk category based on its assessment and risk perception.

The bank also allotted multiple customer identification codes to certain customers instead of a Unique Customer ldentification Code (UCIC) for each customer, the RBI statement said.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions, according to the RBI statement.

The RBI said that this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

HDFC Bank reported a 2.2 per cent year-on-year growth in standalone net profit for Q3FY25 at Rs 16,736 crore. On a sequential basis, the net profit was marginally lower than the corresponding figure of Rs 16,821 crore in Q2FY25.

The bank's interest earned increased 7.6 per cent year-on-year to Rs 76,007 crore, while interest expenses rose 7.7 per cent to Rs 45,354 crore during the quarter.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Open in App

Related Stories

Other SportsIndia A men’s hockey team lose close 2-3 match against England

NationalMyanmar refugees, who took shelter in Mizoram, now returning homes

InternationalIsrael launches strikes on Syrian city amid clashes to protect Druze community

InternationalAir India Plane Crash: International pilots' group cautions against "hasty conclusions" on preliminary probe report

NationalMaha: Rs 28.50 crore fine imposed for illegal minor mineral excavation

Business Realted Stories

BusinessIndia steps up trade talks with EU, US and ASEAN ahead of key deadlines

BusinessMNRE committed to advancing cutting-edge renewable energy technologies: Pralhad Joshi

BusinessJyotiraditya Scindia sets 20-30% growth target for India Post circles in FY26

BusinessPlastiblends India’s Q1 profit drops 17.7 pc, revenue slips over 5 pc

BusinessEdible oil refiners' revenue to dip 2-3% this fiscal despite volume growth: Crisil Ratings