Recorded RBI impact
Fine: Rs 4.20 L
Monetary penalty · Fresh imposition
Published by RBI
3 Oct 2025
Case Brief
RBI imposed a monetary penalty of ₹4.20 lakh on HDB Financial Services Limited after finding non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The sustained violation was that the company failed to obtain PAN, an equivalent e-document, or Form 60 in certain loan accounts disbursed during FY 2023-24. The penalty was issued under the RBI Act, 1934, following inspection, show-cause proceedings, and consideration of the company’s reply and submissions.
Why RBI Acted
RBI imposed a monetary penalty on HDB Financial Services Limited for non-compliance with certain provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The sustained charge was that the company failed to obtain Permanent Account Number (PAN), equivalent e-document thereof, or Form No. 60 in certain loan accounts disbursed during FY 2023-24. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Operating Impact
HDB Financial Services Limited must absorb the monetary penalty and address the KYC/process gap identified by RBI. The release does not impose any operational restriction, but RBI notes the penalty is without prejudice to any other action that may be initiated separately.
Regulatory Basis
- clause (b) of sub-section (1) of Section 58G
- clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 4.20 L
- Order Date
- 1 Oct 2025
- Effective From
- 1 Oct 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC