Central Bank Reserve Bank of India (RBI) has imposed a huge fine of Rs 10 crore on the Indian banking institution HDFC Bank. After knowing about the fine everyone starts to spread the news on social media and other platforms. According to the available news, RBI imposed this penalty due to the contravention of certain provisions of the banking regulation Act 1949.
The available details saying that HDFC Bank has fined due to irregularities in the auto loan portfolio. In an official statement, the central bank said that the action is based on deficiencies in regulatory compliance and will in no way impact it’s dealing with customers.
Although RBI has clarified in its statement that this fine is not imposed due to any validity of any transaction or agreement entered into by the bank with its customers.
Reserve Bank of India imposes a penalty of Rs 10 crores on HDFC Bank Limited for contravention of provisions of section 6(2) and section 8 of the Banking Regulation Act, 1949 (the Act). This action is based on deficiencies in regulatory compliance. pic.twitter.com/xJv5imltWM
— ANI (@ANI) May 28, 2021
The penalty has been imposed in exercise of powers vested in the RBI under provisions of section 47A(1)(c) read with section 46(4)(i) of the Act, the statement further said. Here is the image that contains a complete notification by RBI regarding this penalty over HDFC Bank.
HDFC Bank is a well-known private bank in India and operating from various branches all over the country. Earlier before this fine, Banks has suffered from another Rs 1 crore fine which was imposed in January 2020.