NEW DELHI: The Reserve Bank of India (RBI) on Friday Enforced Rs 10 crore Good on HDFC Bank for contravention of certain provisions of the Banking Regulation Act, 1949.
In a formal announcement, the central bank stated that the activity relies on deficiencies in regulatory compliance and will by no means affect its dealing with clients.
“The activity isn’t meant to pronounce on the validity of any transaction or arrangement entered into by the lender with its own clients,” the RBI said.
The penalty was levied in exercise of powers vested at the RBI under conditions of section 47A(1)(c) read with section 46(4)(I) of this Act, the statement further said.
While analyzing documents in the topic of sale and marketing of third-party products to the lender’s clients, originating out of a whistle blower complaint concerning irregularities at the automobile loan portfolio of the bank, the Reserve Bank discovered contravention of the aforementioned provisions.
“In furtherance to exactly the very same, a note was issued to the lender telling it to show cause as to why punishment shouldn’t be imposed for contravention of the terms of this Act/directions,” the announcement added.
