RBI imposes Monetary Penalty on HDFC Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.10,000 on HDFC Bank Limited in exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for violation of Reserve Bank of India’s directions on acceptance of deposits from non-residents.

The Reserve Bank of India issued a Show Cause notice to the bank, to which the bank responded with a written response as well as oral remarks. After reviewing the circumstances of the case and the bank’s response, the Reserve Bank of India determined that the breaches were proven and merited the imposition of a penalty.

This action is based on regulatory compliance problems and is not intended to rule on the legitimacy of any transaction or agreement entered into by the bank with its clients.