The Reserve Bank of India (RBI) has imposed a ₹75 lakh penalty on HDFC Bank for not following certain rules.
The fine was issued due to the bank’s failure to comply with Know Your Customer (KYC) guidelines.
RBI found that HDFC Bank did not properly classify some customers based on their risk level—low, medium, or high.
Additionally, instead of assigning a Unique Customer Identification Code (UCIC), the bank gave multiple identification codes to some customers.
Other Banks Also Penalized
RBI conducted an inspection of HDFC Bank’s financial status as of March 31, 2023. During this review, it also found violations by other financial institutions.
KLM Axiva Finvest, a non-banking financial company, was fined ₹10 lakh. The company declared a dividend for the 2023-24 financial year despite not meeting the necessary regulatory conditions in the previous three years.
Punjab & Sind Bank received a penalty of ₹68.20 lakh for failing to follow key regulations.
These included maintaining a centralized database for shared risks, ensuring universal banking access, and properly managing basic savings bank deposit accounts.
RBI’s Role and Customer Impact
As India’s central banking authority, RBI ensures that banks follow all rules to maintain a stable financial system.
Despite these penalties, RBI confirmed that the fines will not impact banking services for customers.
