RBI has imposed a fine of Rs 75 lakh on HDFC Bank for not following KYC guidelines. Apart from this, a fine of Rs 68.20 lakh has been imposed on Punjab and Sind Bank.
HDFC Bank News: The Reserve Bank of India (RBI) has imposed a fine of Rs 75 lakh on HDFC Bank citing non-compliance of KYC guidelines. Apart from this, action has also been taken against Punjab and Sind Bank for violating the rules. Punjab and Sind Bank has been fined Rs 68.20 lakh.
Why action on HDFC Bank
The Central Reserve Bank said- The fine has been imposed on HDFC Bank under the provisions of Section 46(4)(i) along with Section 47A(1)(c) of the Banking Regulation Act, 1949. A statutory inspection was conducted for supervisory assessment of the bank with reference to its financial position as of March 31, 2023. After this a notice was issued to the bank. After considering the bank’s reply and additional submissions made by it, the Reserve Bank found that the allegations were correct. The bank did not classify some customers into low, medium or high risk category based on its assessment and risk concept and the bank allocated multiple customer identification codes to some customers instead of a unique customer identification code for each customer.
Why action on Punjab & Sind Bank?
Punjab & Sind Bank was fined Rs 68.20 lakh for not complying with certain directions issued. This fine has been imposed using the powers conferred on the RBI under the provisions of Section 46(4)(i) and 51(1) along with Section 47A(1)(c) of the Banking Regulation Act, 1949. After the bank’s response to the notice issued by the RBI, it was found that the allegations against the bank were correct.
Action on NBFCs also
Apart from this, RBI has also imposed a fine of Rs 10 lakh on KLM Exiva Finvest. It is a non-deposit taking middle layer NBFC. The company did not follow the necessary rules contained in the Reserve Bank of India (NBFC-Scale Based Regulation) Directions, 2023. Because of this RBI took this action.
