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The Reserve Bank of India (RBI) has imposed monetary penalties on HDFC Bank and Punjab & Sind Bank for non-compliance with its regulatory guidelines, according to the press statement issued by the RBI on Wednesday (March 26). While HDFC Bank is slapped with a Rs.75 lakh penalty for violations related to KYC norms, Punjab & Sind Bank was fined Rs.68.2 lakh for lapses in reporting large exposures and maintaining basic savings accounts.
Explaining the reasons behind the penalty on HDFC Bank, RBI said that it had conducted a statutory inspection of the bank with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with the central bank's directives, the RBI issued a notice to the bank advising it to show cause as to 'why penalty should not be imposed on it for its failure to comply with the said directions.'
HDFC Bank replied to the notice accordingly. Considering the bank’s reply and additional submissions made by it, RBI found certain discrepancies. 'Certain charges against the bank were sustained, warranting imposition of monetary penalty,' RBI said.
In another order, RBI also imposed monetary penalty of Rs.68.2 lakh on Punjab & Sind Bank for non-compliance with guidelines issued by the central bank on ‘Creation of a Central Repository of Large Common Exposures – Across Banks’ and ‘Financial Inclusion - Access to Banking Services – Basic Savings Bank Deposit Account (BSBDA)’.
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