Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty on The Hongkong and Shanghai Banking Corporation Limited by order dated June 24, 2024. The penalty was levied for non-compliance with RBI directions relating to credit card, debit card and rupee-denominated co-branded prepaid card operations, as reiterated in the RBI’s 2022 Directions. RBI’s supervisory inspection found that the bank failed to ensure there was no negative amortisation while computing Minimum Payment Due in certain credit card accounts. The action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.