RBI imposes monetary penalty on HDFC Bank Limited
Case Brief
By order dated March 24, 2025, RBI imposed a monetary penalty on HDFC Bank Limited under the Banking Regulation Act, 1949. The penalty followed supervisory inspection findings that the bank had not properly categorised some customers into low/medium/high risk and had allotted multiple customer identification codes to some customers instead of a Unique Customer Identification Code (UCIC), contrary to RBI KYC directions.
RBI imposed a monetary penalty under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, based on supervisory findings from the Statutory Inspection for Supervisory Evaluation (ISE 2023). The sustained charges were that the bank did not categorise certain customers into low, medium or high risk based on its assessment and risk perception, and allotted multiple customer identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer, constituting non-compliance with RBI's KYC directions.
Severity Assessment
The action is a monetary penalty of ₹75 lakh, which falls in severity band 2, and there is no broader operational restriction.
HDFC Bank must absorb the penalty and ensure stronger compliance with RBI's KYC framework going forward. The order does not invalidate customer transactions, but it signals supervisory scrutiny and the possibility of additional regulatory action if deficiencies persist.
Published as HDFC Bank Limited
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HDFC Bank Limited
Monetary penalty · Fresh imposition
HDFC Bank Limited
Monetary penalty · Fresh imposition
HDFC Bank Limited
Monetary penalty · Fresh imposition
HDFC Bank Limited
Monetary penalty · Fresh imposition
HDFC Bank Limited
Monetary penalty · Fresh imposition
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