On 10 September 2024, the RBI imposed monetary penalty equal to ₹1,00,00,000 rupees (one crore) on HDFC Bank Limited due to non-compliance discovered during a statutory inspection. It was found that the bank had given gifts in excess of ₹250 in the form of paying a first-year premium for complimentary life insurance cover to the depositors at the time of accepting certain deposits, as well as opening deposit savings accounts for ineligible entities. For more information, please click here.

On 10 September 2024, the RBI imposed monetary penalty equal to ₹1,91,00,000 rupees (one crore and ninety-one lakh) on Axis Bank Limited due to non-compliance discovered during a statutory inspection relating to interest rate deposits, know your client (KYC) and credit flow to agriculture- collateral free agricultural loans. The bank had been found to have opened deposit savings accounts for ineligible entities, issued multiple customer identification code to some customers instead of a Unique Customer Identification Code (UCIC) for each customer, and used a wholly owned subsidiary as its technology service provider. For more information, please click here.

On 13 September 2024, the RBI imposed monetary penalty equal to ₹31,80,000 rupees (thirty-one lakh eighty thousand) on BNP Paribas due to non-compliance relating to directions issued by RBI on ‘Interest Rate on Advances’. For more information, please click here.

On 13 September 2024, the RBI imposed monetary penalty equal to ₹23,10,000 rupees (twenty-three lakh ten thousand) on SMFG India Credit Company Limited due to non-compliance with the ‘Master Direction - Information Technology Framework for the NBFC Sector’, as well as other cyber security measures. During an inspection it was found that the company had not ensured contracts between itself, and outsourced vendors had required provisions relating to monitoring and oversight, that the company had not conducted an IS Audit since inception, and that there was not sufficient retention of certain audit logs. For more information, please click here.

On 13 September 2024, the RBI imposed monetary penalty equal to ₹7,90,000 rupees (seven lakh ninety thousand) on Muthoot Vehicle & Asset Finance Limited due to various deficiencies uncovered during an inspection. The company was found to have failed to disclose information relating to liquidity coverage on its website, did not submit data with respect to its gold loan customers to the four Credit Information Companies, and did not convey in writing the amount of loan sanctioned along with the terms and conditions in vernacular language easily understood by loan borrowers. For more information, please click here.

On 13 September 2024, the RBI imposed monetary penalty equal to ₹10,40,000 rupees (ten lakh forty thousand) on Hewlett Packard Financial Services (India) Private Limited due to various deficiencies uncovered during an inspection. The inspection found that the company had failed to put in place a system of periodic review of risk categorisation of accounts, failed to disclose and explicitly communicate the rate of interest in certain cases, and failed to form an IT Strategy Committee and an IT Steering Committee. For more information, please click here.

On 26 September 2024, the RBI imposed monetary penalty equal to ₹ 61.60 lakh rupees (sixty-one lakh and sixty thousand) on The Surat People’s Co-operative Bank Limited, Surat due to various deficiencies uncovered during an inspection. The inspection found that the company had failed to classify loan accounts of certain borrowers of non- performing assets, sanction certain director-related loans, as well as levied certain inappropriate charges. For more information, please click here.