The Reserve Bank of India (RBI) has imposed a ₹75 lakh penalty on HDFC Bank for non-compliance with Know Your Customer (KYC) guidelines. The central bank released an official statement on Wednesday, noting that the fine was imposed because of breaches of guidelines laid down in 2016. The most recent update of these KYC norms was done in November 2024.
Inspection Reveals Regulatory Breaches
RBI detected these regulatory failures during a March 2023 inspection of HDFC Bank. The bank was issued a show-cause notice for the shortcomings after the assessment. The penalty was levied when RBI found the bank's response inadequate.
Major Violations Detected
Not categorizing customers based on risk assessment
Issuing the same ID code to different people rather than unique customer IDs
Penalty Not Tied to Customer Transactions
The RBI clarified that the penalty solely addresses non-compliance with regulatory requirements. It does not impact customer transactions or banking operations.
Tags Cloud
