RBI Imposes Monetary Penalty on ‘HDFC Bank Limited’ and ‘Axis Bank Limited’ for Non-compliance with RBI Directives
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- Last Updated on 12 September, 2024
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Press Release No. 2024-2025/1075; Dated: 10.09.2024
The RBI has imposed a monetary penalty of Rs 1 crore on ‘HDFC Bank Limited’ and Rs 1.91 crore on ‘Axis Bank Limited’ for non-compliance with certain directions issued by RBI on Interest Rate of Deposits. Both banks opened certain savings deposit accounts in the name of ineligible entities.
‘HDFC Bank Limited’ gave gifts (in the form of paying a first-year premium for the complimentary life insurance cover) costing more than Rs 250 to the depositors at the time of accepting certain deposits. The bank also failed to ensure that customers were not contacted after 7 pm and before 7 am.
Further, a wholly-owned subsidiary of Axis Bank undertook business as a technology service provider, which is not a permissible business that can be undertaken by a banking company u/s 6 of the Banking Regulation Act. The bank obtained collateral security for agricultural loans of up to Rs 1.60 lakh in certain cases.
This action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
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