HDFC Bank fined Rs 10cr by RBI for irregularities in auto loan portfolio
HDFC Bank has been fined INR 10 crore by the Reserve Bank of India (RBI) for deficiencies in regulatory compliance pertaining to the marketing and sale of third-party non-financial products to its customers.
The fine on HDFC Bank comes in the wake of the Reserve Bank of India acting on a complaint from a whistleblower about irregularities in the former’s auto loan portfolio.
The Reserve Bank of India has charged the Indian private lender with violating the provisions of section 6(2) and section 8 of the Banking Regulation Act, 1949 (the Act).
HDFC Bank fined Rs 10cr by RBI for irregularities in auto loan portfolio. Photo courtesy of HDFC Bank Ltd.
The Indian central bank stated: “This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Act.
“This 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.”