HDFC Bank has been penalized Rs. 91,00,000 by the Reserve Bank of India (RBI) due to non-compliance with certain directives. The penalty was imposed following an order dated November 18, 2025. The contraventions relate to directions regarding interest rates on advances and outsourcing of financial services.
Penalty for Non-Compliance
HDFC Bank has been subjected to a penalty of Rs. 91,00,000 by the Reserve Bank of India (RBI). This action follows a review of the bank’s adherence to specific regulatory guidelines. The official order imposing the penalty was issued on November 18, 2025.
Reasons for the Penalty
The penalty is attributed to contraventions of directives outlined in Section 7(a)(b) & (c) of the Reserve Bank of India (Interest Rate on Advances) Directions, 2016. Additionally, violations were identified concerning Paragraph 2 of the Reserve Bank circular dated November 3, 2006, which addresses guidelines on managing risks and the code of conduct in outsourcing of financial services by banks, as well as Paragraph 8(b) of Reserve Bank of India (KYC) Directions and Section 19(1)(a) read with Section 6(1) of the Banking Regulation Act, 1949.
Corrective Actions Undertaken
HDFC Bank has since taken corrective measures to address the identified issues. HDBFS has also initiated corrective actions to remediate its processes. As of November 28, 2025, both HDFC Bank and HDBFS are reportedly in compliance with the mentioned directives.
Source: BSE
