Case Brief
What Happened
RBI, by order dated February 24, 2025, imposed a monetary penalty of ₹66.60 lakh on The Hongkong and Shanghai Banking Corporation Limited. The action followed a statutory inspection and subsequent show-cause proceedings. RBI sustained findings that the bank outsourced disposal/closure of AML alerts to a group company, failed to report unhedged foreign currency exposures of certain borrowers to CICs, and opened savings deposit accounts in the name of certain ineligible entities. The penalty was imposed under the Banking Regulation Act, 1949 and the Credit Information Companies (Regulation) Act, 2005.