Live
- People will not forgive Congress for repeatedly insulting Constitution: Kiren Rijiju
- Aid group resumes activities at famine-hit camp in Sudan
- Kishan Reddy Vows to End BRS and Congress Influence in Telangana, Criticizes CM's Governance
- Punjab bypolls: Bittu twisting words for political gains, says Congress nominee
- Punjab CM to administer oath to over 10,000 sarpanches on Friday
- BJP Core Committee Plans Protests Against State Government’s Failures
- Mulugu Collector Divakar's Facebook Hacked Again, Cyber Criminals Send Fraudulent Messages Asking for Money
- The Role of Genetics in Obesity: Can Metabolic Bariatric Surgery Help?
- Deputy CM Bhatti Vikramarka's Visit to Khammam District: Lays Foundation for Road Works Worth Rs. 8.9 Crore
- ED Files Charge Sheet in Agrigold Case, Attaches Assets Worth Over ₹4,100 Crores
RBI imposes monetary penalty of Rs 10 crore on HDFC Bank
RBI imposes monetary penalty of Rs 10 crore on HDFC Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 10 crore on HDFC Bank for violation of provisions under various sections of the Banking Regulation Act.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 10 crore on HDFC Bank for violation of provisions under various sections of the Banking Regulation Act. RBI in a statement said that this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or an agreement entered into by the bank with its customers.
According to the statement, an examination of documents in the matters of marketing and the sale of third-party non-financial products to the bank's customers, arising from a whistleblower complaint to the RBI, regarding irregularities in the auto loan portfolio of the bank, revealed violation of the above-mentioned provisions of the Banking Regulation Act.
The RBI said that after considering the bank's reply to the show cause notice, the oral submissions made during the personal hearing, as well as examination of further clarifications or documents furnished by the bank, it was concluded that the aforesaid charge of contravention of provisions of the Banking Regulation Act was substantiated and warranted imposition of monetary penalty. Section 8 of the Banking Regulation Act states that a bank cannot directly or indirectly deal with buying, selling, or bartering goods. However, a bank may barter the transactions relating to bills of exchange received for collection or negotiation.
The penalty was imposed in the exercise of powers vested by the central bank under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act.
