Case Brief
What Happened
By an order dated March 18, 2026, RBI imposed a monetary penalty on The Hongkong and Shanghai Banking Corporation Limited for non-compliance with certain directions on ‘Inoperative Accounts / Unclaimed Deposits in Banks - Revised Instructions’. The supervisory inspection found that the bank did not host a searchable database of unclaimed deposits on its website and did not generate and assign UDRNs for certain unclaimed deposits transferred to the DEA Fund. RBI issued a show-cause notice, considered the bank’s reply and hearing submissions, and concluded that the charges were sustained. The penalty was imposed under section 47A(1)(c) read with section 46(4)(i) of the Banking Regulation Act, 1949.