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Penalty on HDFC: RBI has imposed a penalty of Rs 91 lakh on HDFC Bank for violating KYC rules. RBI has said that after issuing a notice to the bank, this action has been taken after the investigation was found to be correct.
New Delhi. The Reserve Bank of India has imposed a fine of Rs 91 lakh on the country’s largest private bank HDFC. The question is what work has HDFC done that RBI has taken such strict action. In the information given by RBI, it has been said that HDFC has taken all this step due to the misbehavior done by the bank with its customers.
According to the central bank, the Reserve Bank of India has imposed a fine of Rs 91 lakh on HDFC Bank for violating certain rules of the Banking Regulation Act. This penalty has been imposed on this private sector bank for deficiencies in legal and regulatory obligations related to ‘Know Your Customer’ (KYC). RBI has clearly said that banks should behave well with their customers.
Why was the penalty imposed on the bank?
The Reserve Bank said that this penalty has been imposed on the bank for violation of some rules of Banking Regulation Act, non-compliance of conditions related to interest rate on loan, guidelines of risk management and code of conduct for financial services and some instructions related to KYC. The Reserve Bank said that a statutory inquiry was conducted to conduct a supervisory assessment of the bank as per its financial position as on March 31, 2024.
RBI had issued notice
A notice in this regard was issued to the bank by the Reserve Bank. After considering the bank’s response and the additional information provided by it, the Reserve Bank found that the allegations against the bank were true and warranted the imposition of a monetary penalty. HDFC had flirted with its customers regarding KYC rules. Due to this, the bank customers were not getting proper service, after receiving the complaint, RBI has taken strict action.
What is the KYC rule of the bank?
According to RBI guidelines, all banks are required to get their customers verified. If any bank disregards this or shows excessive carelessness in this matter, then the Central Bank can take strict action against it. A similar case came to light regarding HDFC Bank also. After receiving the complaint, RBI issued a notice and after investigation found it to be true, RBI has imposed a fine.
