Case Brief
What Happened
By an order dated May 27, 2021, RBI imposed a monetary penalty of ₹10.00 crore on HDFC Bank Limited under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. RBI said the bank contravened sections 6(2) and 8 of the Act. The penalty followed an examination of documents relating to marketing and sale of third-party non-financial products to customers, prompted by a whistle-blower complaint concerning irregularities in the bank’s auto loan portfolio. RBI stated the action was for deficiencies in regulatory compliance and did not determine the validity of customer transactions or agreements.