Case Brief
What Happened
The Reserve Bank of India imposed monetary penalties on HDFC Bank Ltd., ING Vysya Bank Ltd., and IDBI Ltd. under Section 47A(1)(b) of the Banking Regulation Act, 1949. RBI said the banks had violated KYC norms, breached prudent banking practices, and failed to adhere to its directives/guidelines relating to loans against shares and IPO finance. After show-cause notices, written responses, and personal hearings, RBI concluded that the violations were substantiated and levied penalties of Rs. 25 lakh, Rs. 10 lakh, and Rs. 5 lakh respectively.