BREAKING NEWS

RBI Slaps Rs 10 Crore Penalty On HDFC Bank

By
OB Bureau

Mumbai: The Reserve Bank of India (RBI) on Friday imposed a penalty of Rs 10 crore on HDFC Bank Limited for violating provisions of section 6 (2) and section 8 of Banking Regulation Act, 1949.

RBI explained that its action is based on 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, reported NDTV Profit.

According to RBI’s statement, following a whistle blower’s complaint regarding irregularities in the bank’s auto loan portfolio, the central bank examined documents in matters of marketing and sale of third-party non-financial products to the bank’s customers. The probe revealed violation of the above-mentioned provisions of the Banking Regulation Act.

OB Bureau

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