The Reserve Bank of India (RBI) has fined HDFC Bank ₹75 lakh, citing rule violations. According to RBI, the penalty was imposed due to lapses in following Know Your Customer (KYC) guidelines.
RBI stated that HDFC Bank failed to classify some customers based on their risk category, such as low, medium, or high.
Additionally, the bank issued multiple identification codes to certain customers instead of assigning a Unique Customer Identification Code (UCIC).
Other Banks Also Penalized
RBI conducted a regulatory inspection based on HDFC Bank’s financial position as of March 31, 2023.
Along with HDFC Bank, RBI also fined KLM Axiva Finvest, a non-banking financial company, ₹10 lakh for violating rules related to dividend declaration under RBI Directions 2023.
The company declared a dividend for the financial year 2023-24 despite not meeting the required regulatory standards in the past three years.
Additionally, Punjab & Sind Bank was fined ₹68.20 lakh for failing to follow rules related to creating a centralized repository for large shared risks, ensuring universal banking access, and maintaining a basic savings bank deposit account.
RBI’s Role and Impact on Customers
RBI serves as the regulator of the banking system and ensures that banks follow all necessary guidelines. However, RBI clarified that these fines will not affect banking services for customers.