(*10*)RBI imposed the penalty on HDFC Bank on account of violation of sure sections beneath Banking Regulation Act
The Reserve Bank of India (RBI) on Friday, May 28, imposed a financial penalty of Rs 10 crore on HDFC Bank Limited for violation of provisions of part 6(2) and part 8 of the Banking Regulation Act, 1949 (the Act). The central financial institution mentioned in an announcement as we speak that this motion is predicated on the deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or an settlement entered into by the financial institution with its clients.
According to the assertion, an examination of paperwork within the issues of promoting and the sale of third-party non-financial merchandise to the financial institution’s clients, arising from a whistle blower grievance to the RBI, concerning irregularities within the auto mortgage portfolio of the financial institution, revealed violation of the above-mentioned provisions of the Banking Regulation Act.
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