HDFC Bank’s Dubai International Financial Centre (DIFC) branch has received a decision notice from the Dubai Financial Services Authority (DFSA). The notice prohibits the branch from soliciting new clients or engaging in financial promotions with new clients, effective September 26, 2025. The restrictions do not affect servicing existing customers or onboarding clients previously offered services.
DIFC Branch Restrictions Imposed
HDFC Bank’s branch located in the Dubai International Financial Centre (DIFC) is now subject to certain operational restrictions. Effective September 26, 2025, the Dubai Financial Services Authority (DFSA) issued a decision notice that limits the branch’s activities.
Scope of the Prohibition
The DFSA’s decision specifically prohibits the DIFC Branch from:
* Soliciting or conducting business with new clients. This includes any client who had not completed the DIFC Branch’s onboarding process as of September 25, 2025 and whose activities constitute the carrying on of financial services such as advising on financial products, arranging deals in investments or credit, and advising on credit and arranging custody.
* Soliciting, onboarding, or engaging in any Financial Promotions with any new client.
Exemptions to the Prohibition
The restrictions outlined in the decision notice do not apply to the following:
* The continued servicing of existing customers of the DIFC Branch.
* The onboarding and servicing of customers who may have been previously offered or provided financial services but who had not, at such time, been onboarded as clients of the DIFC Branch.
Ongoing Cooperation
HDFC Bank has stated that it is cooperating with the DFSA in its ongoing investigation and is taking steps to comply with the directives outlined in the notice. The prohibition will remain in effect unless otherwise amended or revoked in writing by the DFSA.
Minimal Impact Anticipated
The bank believes that the restrictions will not have a material impact on its overall operations or financial position. As of September 23, 2025, the DIFC Branch has 1,489 customers onboarded, inclusive of joint account holders. Existing customers will continue to be served, and previously contacted potential clients may still be onboarded.
Source: BSE
