RBI slaps Rs. 1cr penalty on HDFC Bank

The RBI has levied a penalty of Rs 1 crore on HDFC Bank for violating the KYC norms, according to the information from the central bank. During a supervisory evaluation (2016-17), the bank is to have “failed to exercise ongoing due diligence” in regard with 39 current accounts opened by its customers for bidding in IPO.

“It was observed that the transactions effected in these current accounts were disproportionate to the declared income and profile of the customers,” the RBI said. A notice has been issued to HDFC bank by the RBI to show cause as to why HDFC should be penalized for non-compliance with the direction.

“After considering the reply received from the bank and oral submissions made in the personal hearing, the RBI came to the conclusion that imposition of monetary penalty was warranted,” the release said.