New Delhi: The Reserve Financial institution on Thursday imposed a penalty of INR 10 crore on HDFC bank for not complying with the regulatory suggestions on car loans. The penalties have been imposed right after an inspection conducted by the RBI on a whistleblower complaint regarding irregularities in the car personal loan portfolio of the bank, the central bank said in a assertion.
“RBI has imposed, by an purchase dated May well 27, 2021, a monetary penalty of INR 10.00 crore (Rupees ten crore only) on HDFC Financial institution Limited (the bank) for contravention of provisions of part 6(two) and part eight of the Banking Regulation Act, 1949 (the Act). This penalty has been imposed in training of powers vested in RBI below the provisions of Segment 47A(one)(c) read with Segment 46(four)(i) of the Act,” RBI said.
This motion is based mostly on deficiencies in regulatory compliance and is not supposed to pronounce on the validity of any transaction or arrangement entered into by the bank with its customers, the central bank pointed out.
A observe was issued to the HDFC bank advising it to show cause as to why penalty should really not be imposed on it for this kind of non-compliance with the instructions.
“Following taking into consideration the bank’s reply to the show cause observe, oral submissions produced throughout the private listening to and examination of even more clarifications/documents furnished by the bank, RBI came to the summary that the aforesaid charge of contravention of provisions of the Act was substantiated and warranted imposition of monetary penalty,” the assertion added.