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Digital Identity, Security & Online Fraud

Reserve Bank of India fines HDFC Bank for KYC norms violation

Wednesday 19 June 2019 | 11:17 AM CET

Reserve Bank of India has revealed it fined the private sector lender HDFC Bank INR 1 crore for not reporting frauds and non-compliance with other directions.

As per the RBI’s statement, the fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency. The fine was imposed through an order after considering HDFC Bank's reply, oral submissions made during the personal hearing, and additional submission made. However, a notice was issued to HDFC Bank on why monetary penalty should not be imposed for non-compliance with the directions.

The Reserve Bank also suggested that this is action is based on deficiencies in regulatory compliance, and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. On the other hand, HDFC Bank affirmed that it had taken the necessary measures in order to strengthen its internal control mechanisms, and to ensure that such incidents do not recur.

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