HDFC Bank Slapped with Rs1 Crore Penalty for Non-compliance with Deposit and Customer Service Guidelines
Moneylife Digital Team 10 September 2024
The Reserve Bank of India (RBI) has imposed a penalty of Rs1 crore on HDFC Bank Ltd for failing to follow guidelines on interest rates on deposits, the use of recovery agents, customer service standards in banks and the management of risks and code of conduct for outsourcing financial services.
 
In a release, RBI says the penalty was imposed on HDFC Bank after it was found that the Bank had provided gifts in the form of paying the first-year premium for complimentary life insurance coverage exceeding Rs250 to depositors when accepting certain deposits. Additionally, the Bank opened savings accounts in the names of ineligible entities and failed to ensure that customers were not contacted between 7pm and 7am.
 
After considering the facts of the case and the Bank’s reply, RBI concluded that the violations were substantiated and warranted the imposition of penalty.
 
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
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