RBI imposes monetary penalty on HDFC Bank Limited

The Reserve Bank of India (RBI) has,imposed a monetary penalty of Rs 1,00,00,000 (Rupees One crore only) on HDFC Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Recovery Agents engaged by Banks’ and ‘Customer Service in Banks’ read with the BCSBI Code and ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’. 

This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 47 A (1) (c) read with section 46 (4) of the Banking Regulation Act, 1949.
 

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The following charges against the bank were sustained, warranting imposition of monetary penalty. 

The bank:
a. gave gifts (in the form of paying first-year premium for the complimentary life 
insurance cover) costing more than Rs 250 to the depositors at the time of accepting certain deposits;
b. opened certain savings deposit accounts in the name of ineligible entities; and
c. failed to ensure that customers are not contacted after 7 pm and before 7 am. 
 

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