Mumbai/New Delhi, Mar 26 (UNI) The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 75 on HDFC Bank for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’.
The Statutory Inspection for Supervisory Evaluation of the bank was conducted by RBI with reference to its financial position as on March 31, 2023.
Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.
After considering the bank’s reply to the notice and additional submissions made by it, RBI found, inter alia, that two charges against the bank were sustained, warranting imposition of monetary penalty.
The charges are – i) The bank did not categorise certain customers into low, medium or high risk category based on its assessment and risk perception; and ii) The bank allotted multiple customer identification code to certain customers instead of a Unique Customer ldentification Code (UCIC) for each customer, the RBI said in a statement.
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. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank, it added.
