The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 29.60 lakh on HSBC Bank for violating rules.
RBI said in a release on June 28 that the bank did not comply with certain directions issued by RBI on credit card, debit card and rupee denominated co-branded prepaid card operations, which are reiterated in the Reserve Bank of India ((Credit Card and Debit Card Issuance and Conduct) Directions, 2022.
RBI further said that the bank failed to ensure that there is no negative amortisation while calculating the minimum payment due in certain credit card accounts.
The banking regulator said the action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
