HDFC Bank fined 10 crore, strict action by RBI on violation of banking rules. The country’s largest private bank HDFC Bank has been fined Rs 10 crore. The Reserve Bank of India (RBI), taking strict action on the violation of banking rules, issued its order on Friday.
The central bank found many irregularities in the car / auto loan
Portfolio of HDFC Bank A whistle blower had complained to the RBI in this regard. The central bank investigated the documents of HDFC Bank selling and marketing a third-party non-financial product to its customers in the case and found it to be in violation of banking regulations.
Reserve Bank in its investigation found the matter to be a violation of Section-8 and Section-6 (2) of the Banking Regulation Act-1949.
RBI considered the reply on HDFC Bank’s notice and considered the oral statement during the hearing. He also looked into the explanations and documents provided by the bank but after not being satisfied he imposed a fine of Rs 10 crore on HDFC Bank.