RBI Fines Rs. 10 Cr on HDFC Bank: Reserve Bank of India (RBI) has imposed Rs. 10 Crore fine on HDFC Bank. The fine imposed by the RBI because of selling vehicle tracking devices to its auto loan customers. The central bank made this due to the irregularities in its vehicle finance division in that bank. Now let’s check the details on this page.
RBI:
- The Reserve Bank of India (RBI) is the Central Bank of India. RBI was founded by the RBI Act of 1934 on 1 April 1935. The key functions of RBI are to manage the printing and supply in the country of currency notes, the banker’s bank, foreign reserve custodian, and the credit controller.
- As stated in the Preamble to RBI Act (1934) the basic functions of the Reserve Bank of India are to “regulate the issuance of bank notes and to keep the reserves to ensure financial stability in India and in general to operate the country’s monetary and credit system”
- So, RBI is the regulator of Indian banks. It monitors and ensures the banks in India. The Reserve Bank of India (RBI) has received complaints about irregularities in the bank’s auto loan portfolio. Because of this complaint the RBI has made an announcement of fines on HDFC Bank. During the investigation, it was reported that action of RBI (Fine on HDFC) had been taken due to irregularities in marketing and sale of third party non-financial items to the bank’s customers.
Detail of Complaint:
The complaint related to the bank’s customers being forced to purchase a vehicle tracking device for approximately four years ending in December 2019, potentially in violation of guidelines that prohibit banks from engaging in non-financial businesses. From 2015 to December 2019, HDFC Bank executives, including auto loan head Ashok Khanna, pushed auto loan customers to purchase GPS devices ranging in price from Rs 18,000 to Rs 19,500.
Press Release:
The trusted sources said in the press note as “After considering the bank’s reply to the show-cause notice, oral submissions made during the personal hearing and examination of further clarifications/documents furnished by the bank, RBI came to the conclusion that the aforesaid charge of contravention of provisions of the Act was substantiated and warranted imposition of monetary penalty”
Rs. 10 Crore Fines:
Reserve Bank of India (RBI) has fined HDFC Bank Rs 10 crore for violating regulations. The Reserve Bank of India (RBI) has issued a notice seeking clarification on the alleged irregularities in the provision of auto loans. It is noteworthy that the fine was imposed due to dissatisfaction with the response of the Reserve Bank. Now HDFC Bank should pay the fine which is imposed by the RBI. Stay connected with us for the further updates regarding this.
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