MUMBAI: The Reserve Bank of India (RBI) has levied a Rs 10 crore punishment on HDFC Bank for bestselling third party products to its car loan clients.
It can be remembered that a year ago, after having a whistleblower complaint, HDFC Bank had twenty-six workers.
The bank was accused of forcing debtors to buy a GPS device from a predetermined provider.
Ashok Khanna, head of the bank automobile loan company had resigned in the aftermath of this scandal.
“An evaluation of records in the topic of sale and marketing of third party products to the lender’s clients, arising out of an whistleblower complaint to RBI about irregularities at the automobile loan portfolio of the bank, shown, inter alia, contravention of the aforesaid conditions of this Act and the regulatory instructions”, RBI said in a statement declaring he good.
An HDFC Bank spokesperson stated that the lender was in control of RBI’s correspondence and would stick with it.
RBI stated that after Thinking about the creditor’s answer to this show-cause note, and oral entries made during the private hearing it concluded the allegations were substantiated and justified imposition of monetary punishment