TIL Desk/Business/Mumbai/ The Reserve Bank of India (RBI) has imposed a penalty of Rs 10 crore on HDFC Bank Ltd for deficiencies in regulatory compliance. The central bank said that the penalty has been imposed as actions of HDFC Bank were found in contravention of provisions of section 6(2) and section 8 of the Banking Regulation Act, 1949.
This action is based on 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, the RBI said in a statement.
An examination of documents in the matter of marketing and sale of third-party non-financial products to the bank`s customers, arising from a whistleblower complaint to RBI regarding irregularities in the auto loan portfolio of the bank, revealed, inter alia, contravention of the aforesaid provisions of the Act and the regulatory directions, it said.
Notice was subsequently issued to the bank advising it to show cause as to why the penalty should not be imposed for contravention of the provisions of the Act/directions.
