Reserve Bank Of India Imposes Penalty Of ₹ 10 Crore On HDFC Bank
Reserve Bank of India (RBI) on Friday, May 28, imposes monetary punishment of ₹ 10 Crore on HDFC Bank on violations of provisions under various parts of the Law of the Banking Regulations
Reserve Bank of India (RBI) on Friday, May 28, imposes monetary punishment of ₹ 10 crore on HDFC Bank is limited to violations of the provisions of Section 6 (2) and Section 8 Bank Act Acts, 1949 (The ACT). The central bank said in a statement today that this action is based on deficiency in regulatory compliance and is not intended to be pronounced on the validity of each transaction or agreement entered by customers with its customers.
According to the statement, checking documents in terms of marketing and selling third-party non-financial products to bank customers, arising from the whistle complaints to the RBI, regarding irregularities in the Bank’s car loan portfolio, reveals violations of the provisions mentioned above Invite banking regulations.
RBI said that after considering the bank’s reply to the show caused notification, oral submission was made during personal hearing, as well as further clarification checks or documents focused by the bank, concluded that allegations contradict the provisions mentioned above. The Law of Banking Regulations is proven and the coercion of monetary penalty is guaranteed.
Section 8 The laws of the banking regulations state that a bank cannot directly or indirectly deal with buying, selling, or bartering goods. However, banks can barter transactions related to exchange bills received for collection or negotiation.
The sentence was imposed in the implementation of the power provided by the central bank under the provisions of Section 47a (1) (c) Read with Section 46 (4) (i) Banking Regulations.
Meanwhile, last year, the reserve bank directed a private sector lender temporarily stopped all the launch of activities that resulted in the upcoming digital business and new credit card sources after power outages from the main data center.
