HDFC Bank will pay RBI Rs. One crore fine

New delhi date. January 31, 2020, Friday

The Reserve Bank of India had sent a show cause notice to HDFC Bank for not imposing penalties on them for not obeying their orders. It was found that the financial transactions conducted by this current account were higher than the revenue and profile of the customer.

It was observed that the financial transactions carried out by this account did not match the customer's declared income, property and customer profile, 'the notice said. "The central bank has imposed a penalty of Rs 1 crore on HDFC Bank for not following the 'know your customer' rules," the central bank said.

In a statement issued by the Reserve Bank today, the bank's supervision in the year 2016-17 found that the HDFC Bank did not comply with the 39 current account opened by the consumers to bid for the initial public offer. "It was found that the transactions made through these accounts were different from the customer's income and their profile," the notice said.

The RBI sent a notice to the bank explaining why they should not be fined for not complying with their order, revealing the reason and showing the reason. After considering the answer received from the bank and the oral presentation at the personal hearing, the RBI came to the conclusion that a financial penalty was inevitable on you.

The notice further stated that the steps taken against you were taken not only to comply with the order and that we did not intend to rescind the validity of the agreement or financial transaction between the bank and its customers.