RBI Slaps ₹31.80 Lakh Penalty on HSBC over Unclaimed Deposit Violations
Moneylife Digital Team 23 March 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹31.80 lakh on Hongkong and Shanghai Banking Corporation Ltd (HSBC) for failing to comply with its directions on inoperative accounts and unclaimed deposits, as per the revised instructions issued to banks.
 
RBI statutory inspection found that HSBC had not hosted a searchable database of unclaimed deposits on its website and had also failed to generate and assign unique unclaimed deposit reference numbers (UDRN) for certain deposits transferred to the depositor education and awareness fund (DEA Fund).
 
After considering HSBC's reply and oral submissions during the personal hearing, RBI states that it has concluded that the non-compliance with its directions was substantiated and warranted the imposition of a monetary penalty.
 
RBI says the penalty imposed on HSBC is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the company with its customers.
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