Case Brief
What Happened
RBI, by order dated November 18, 2025, imposed a monetary penalty on HDFC Bank Limited after supervisory inspection findings showed multiple compliance failures. The bank allegedly used multiple benchmarks within the same loan category, permitted a wholly owned subsidiary to undertake a business not allowed under Section 6 of the Banking Regulation Act, 1949, and outsourced determination of compliance with KYC norms for certain customers to outsourcing agents. RBI imposed the penalty under Section 47A(1)(c) read with Section 46(4)(i) of the BR Act, after considering the bank’s reply and submissions.