Why did RBI fine HDFC?
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Why did RBI fine HDFC?
The Reserve Bank has imposed a penalty of Rs 10 crore on HDFC Bank for deficiencies in regulatory compliances with regard to its auto loan portfolio. The penalty has been slapped after examining a complaint by a whistleblower regarding irregularities in the auto loan portfolio of the lender.
Is KYC mandatory by RBI?
However, in case of any omission, the requisite KYC procedures for customer identification should be got completed at the earliest. The extant RBI guidelines on the subject are as under : (i)Banks are required to issue travellers cheques, demand drafts, mail transfers, and telegraphic transfers for Rs.
When did RBI issued KYC guidelines?
The ‘Know Your Customer’ guidelines were issued in February 2005 revisiting the earlier guidelines issued in January 2004 in the context of the Recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT).
What is the penalty for minimum balance in HDFC?
Metro, Urban And Semi-Urban Branches
| Average Monthly Balance (AMB) | Charges (excluding taxes) | |
|---|---|---|
| Metro & Urban | Semi Urban | |
| >=7,500 to < 10,000 | Rs. 150/- | NA |
| >=5,000 to < 7,500 | Rs. 300/- | NA |
| >=2,500 to < 5,000 | Rs. 450/- | Rs. 150/- |
What amount of monetary penalty has been imposed by RBI on the HDFC Bank?
Rs 10 crore
The Reserve Bank of India (RBI) on 27 May 2021 imposed a monetary penalty of Rs 10 crore on the bank. The penalty has been imposed for marketing / sale of third party non-financial products in contravention of certain provisions of the Banking Regulation Act, 1949.
Who is beneficial owner in KYC?
The term “beneficial owner” has been defined as the natural person who ultimately owns or controls a client and/or the person on whose behalf the transaction is being conducted, and includes a person who exercises ultimate effective control over a juridical person.
What happens if you don’t maintain minimum balance in HDFC?
Banks are allowed to charge non-maintenance of minimum balance penalty to the customers but there is no cap on the charges. So, if the AMB is below ₹2,500 in an urban branch account, the charges are ₹600 per month while if the AMB is less than ₹10,000 but above ₹7,500, the charge is ₹150.
Is HDFC regulated by RBI?
HDFC Bank is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
Why has RBI imposed Rs 1 crore fine on HDFC Bank?
The fine has been imposed taking into account the failure of the bank to adhere to the RBI ’s KYC directive dated February 25, 2016. The Reserve Bank of India (RBI) has imposed Rs 1-crore fine on HDFC Bank for violating know-your-customer (KYC) norms in 39 accounts, which were used for bidding in initial public offering (IPO).
Which banks have been fined by RBI for violating KYC norms?
Earlier in 2013, the RBI had imposed fines on three private banks — Axis Bank, HDFC Bank and ICICI Bank — for violation in KYC norms. The violations related to arrangement of “at par” payment of cheques drawn by co-operative banks and non-adherence to certain aspects of KYC and anti-money laundering norms.
What are the violations of RBI’s Anti-Money Laundering Measures?
The violations related to arrangement of “at par” payment of cheques drawn by co-operative banks and non-adherence to certain aspects of KYC and anti-money laundering norms. The RBI had also said that the banks had failed to obtain PAN card details and to verify the source of funds credited to a few non-resident ordinary accounts.