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RBI Fines HDFC Bank Rs 91 Lakh Over Compliance Lapses
28 Nov
Summary
- HDFC Bank was fined Rs 91 lakh by the RBI.
- Violations include using multiple loan benchmarks and outsourcing KYC.
- The penalty is for non-compliance with banking regulations and RBI directions.
The Reserve Bank of India recently levied a Rs 91 lakh penalty on HDFC Bank Limited. This significant fine was imposed due to the bank's failure to comply with several key banking regulations and RBI directives. The violations noted by the central bank included issues related to interest rates on advances, outsourcing of financial services, and Know Your Customer (KYC) norms.
Specifically, HDFC Bank was found to have used multiple benchmarks for identical loan categories. Furthermore, a subsidiary of the bank engaged in business activities not permitted under the Banking Regulation Act. The outsourcing of KYC compliance for certain customers to external agents also contributed to the penalty.
The RBI clarified that this action is strictly related to compliance issues and does not invalidate any customer transactions. The penalty was issued on November 18, 2025, following a supervisory review of the bank's position as of March 31, 2024.
