RBI imposes imposes Rs 10 crore penalty on HDFC Bank

Mumbai: The Reserve Bank of India has imposed a penalty of Rs 10 crore on HDFC Bank for deficiencies in regulatory compliances with regard to its auto loan portfolio.

The penalty has been slapped after examining a complaint by a whistleblower regarding irregularities in the auto loan portfolio of the lender. The order imposing the fine was issued on May 27. In a statement on Friday, the RBI said it has imposed a monetary penalty of Rs 10 crore on HDFC Bank for contraventions of certain provisions of the Banking Regulation Act, 1949.

The apex bank said an examination of documents in the matter of marketing and sale of third-party non-financial products to the bank's customers, arising from a whistleblower complaint to it regarding irregularities in the auto loan portfolio of the bank, revealed contravention of the provisions of the Act and the regulatory directions.