Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹10,000 on HDFC Bank Limited under Section 11(3) of FEMA, 1999. The penalty was for violation of RBI directions on acceptance of deposits from non-residents. After a show-cause process, including the bank’s written reply and oral submissions, RBI concluded that the violations were substantiated and warranted penalty. RBI also clarified that the action reflected regulatory-compliance deficiencies and was not intended to pronounce on the validity of any transaction or agreement entered into by the bank with its customers.