RBI News for April 2026
RBI reassures on HDFC Bank governance after chairman exit
Reserve Bank of India has clarified that there are no material governance concerns at HDFC Bank following the resignation of part-time chairman Atanu Chakraborty.
The central bank stated that HDFC Bank remains a Domestic Systemically Important Bank (D-SIB) with strong financials, adequate liquidity, and a professionally managed board. It has also approved an interim transition arrangement for the chairman’s position and will continue engagement with the bank’s leadership.
The clarification comes amid market speculation after Chakraborty cited concerns over certain practices not aligned with his values. The bank has reiterated that no additional reasons exist beyond those mentioned in his resignation letter.
RBI penalises Cashfree for escrow account violations
Reserve Bank of India has imposed a penalty of Rs. 3.1 lakh on Cashfree Payments India Private Limited for non-compliance with regulatory norms.
The action followed a statutory inspection covering operations between April 2024 and June 2025, which found that the company had made impermissible debits from an escrow account. The penalty was levied under provisions of the Payment and Settlement Systems Act, 2007.
The RBI clarified that the penalty pertains to regulatory deficiencies and does not question the validity of transactions undertaken by the company with its customers.
HSBC fined Rs. 31.8 lakh for lapses in unclaimed deposits norms
Reserve Bank of India has levied a penalty of Rs. 31.8 lakh on Hongkong and Shanghai Banking Corporation for non-compliance with directions on inoperative accounts and unclaimed deposits.
The regulator found that the bank failed to maintain a searchable database of unclaimed deposits on its website and did not assign Unclaimed Deposits Reference Numbers (UDRN) for certain deposits transferred to the Depositor Education and Awareness Fund.
The RBI emphasised that the penalty is based solely on regulatory lapses and does not affect the validity of customer transactions.
RBI explores avenues for Russian partners to utilise INR balances
Reserve Bank of India is working on mechanisms to enable Russian trade partners to utilise accumulated Indian rupee balances through imports and investments in India.
The initiative aims to strengthen bilateral trade settlement in local currencies and reduce dependence on the US dollar. RBI officials indicated that options include allowing the use of rupee balances for capital investments and trade settlements within India.
However, the central bank noted that greater trust and acceptance among exporters and importers is essential to expand the use of local currencies in international trade transactions.
