Reserve Bank of India fines HDFC Bank Rs 1 crore for not reporting frauds, violation of KYC norms

Reserve Bank of India (RBI) on Tuesday fined country's largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions

Press Trust of India June 19, 2019 12:39:35 IST
Reserve Bank of India fines HDFC Bank Rs 1 crore for not reporting frauds, violation of KYC norms
  • The fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency, the RBI said

  • A notice was issued to HDFC Bank on why monetary penalty should not be imposed for non-compliance with the directions, the apex bank said

  • HDFC Bank said it has taken necessary measures to strengthen its internal control mechanisms so as to ensure that such incidents do not recur

Mumbai: Reserve Bank of India (RBI) on Tuesday fined country's largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions.

The fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency, the RBI said.

"Examination in this regard revealed violations of RBI directions on 'KYC/AML norms' (know your customer/anti-money laundering)and on reporting of frauds," RBI said on its website.

Reserve Bank of India fines HDFC Bank Rs 1 crore for not reporting frauds violation of KYC norms

Representational image. Reuters.

A notice was issued to HDFC Bank on why monetary penalty should not be imposed for non-compliance with the directions, the apex bank said.

The fine was imposed through an order last Thursday after considering HDFC Bank's reply, oral submissions made during the personal hearing and additional submission made, the apex bank said.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, it said.

"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 clarified.

In a statement to exchanges, HDFC Bank said it has "taken necessary measures to strengthen its internal control mechanisms so as to ensure that such incidents do not recur".

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

PNB SO Recruitment 2020: Punjab National Bank releases notification for 535 posts; apply by 29 Sept
India

PNB SO Recruitment 2020: Punjab National Bank releases notification for 535 posts; apply by 29 Sept

The PNB SO recruitment exam will be held in October or November. The schedule for the exam will be released soon at pnbindia.in

India drops one position in World Bank's Human Capital Index, ranked 116  among 174 nations
India

India drops one position in World Bank's Human Capital Index, ranked 116 among 174 nations

However, India's score in the 2020 Human Capital Index update, which ranked countries based on health and education data till March, was still better than its performance in 2018

Supreme Court extends relief on NPAs after govt says interest issue being considered at 'highest level'
India

Supreme Court extends relief on NPAs after govt says interest issue being considered at 'highest level'

The Centre told the court an expert panel has been set up to look into the interest being charged by banks on instalments deferred during the moratorium