RBI imposes INR 10 crore penalty on HDFC Bank over auto loan portfolio, Auto News, ET Auto

A see was issued to the HDFC bank advising it to present result in as to why penalty must not be imposed on it for this sort of non-compliance with the directions.

New Delhi: The Reserve Financial institution on Thursday imposed a penalty of INR 10 crore on HDFC bank for not complying with the regulatory recommendations on vehicle financial loans. The penalties have been imposed right after an inspection carried out by the RBI on a whistleblower complaint about irregularities in the vehicle personal loan portfolio of the bank, the central bank claimed in a assertion.

“RBI has imposed, by an buy dated May possibly 27, 2021, a monetary penalty of INR 10.00 crore (Rupees 10 crore only) on HDFC Financial institution Confined (the bank) for contravention of provisions of segment six(two) and segment 8 of the Banking Regulation Act, 1949 (the Act). This penalty has been imposed in workout of powers vested in RBI beneath the provisions of Part 47A(one)(c) examine with Part 46(4)(i) of the Act,” RBI claimed.

This motion is based mostly on deficiencies in regulatory compliance and is not supposed to pronounce upon the validity of any transaction or settlement entered into by the bank with its clients, the central bank mentioned.

A see was issued to the HDFC bank advising it to present result in as to why penalty must not be imposed on it for this sort of non-compliance with the directions.

“Immediately after thinking about the bank’s reply to the present result in see, oral submissions created throughout the own hearing and evaluation of even further clarifications/paperwork furnished by the bank, RBI came to the conclusion that the aforesaid charge of contravention of provisions of the Act was substantiated and warranted imposition of monetary penalty,” the assertion added.