On Friday, Reserve Bank of India imposed a penalty of Rs. 10 crores on HDFC Bank, due to the deficiencies in regulatory compliances. It was mentioned in a notice which was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the provision of the act / direction.
This was imposed for the case which has pertained to the marketing and sale of the third party non financial products and also it pertained along with the auto loan to the bank customers.
Already, a year ago such a mode of case has registered which was related to the auto loan providing to their customers. RBI in its statements mentioned that, by the examining certain documents which was related to the marketing and sale of third party non financial products. It was found that the bank has infringed certain rules which was provided by the RBI with the provisions of Sec 6(2) and Sec 8 of the Banking Regulation Act, 1949.
RBI came to a conclusion that the bank has to pay the imposition of monetary penalty for the violation of the Reserve Bank of India norms and the penalty was about an amount of Rs. 10 crores.