RBI Imposes Rs 75 Lakh Penalty On HDFC Bank For Breach Of Norms

The Reserve Bank of India (RBI) has imposed a penalty of Rs 75 lakh on HDFC Bank, the country's largest private sector lender, for not complying with directions in the RBI's Know Your Customer (KYC) master direction, according to an official statement issued on Wednesday.

After considering HDFC Bank's reply to a showcause notice for violation of norms and additional submissions made by it, The RBI found, inter alia, that the charges against the bank were sustained, warranting imposition of monetary penalty.

The RBI found that the bank did not categorise certain customers into low, medium or high risk category based on its assessment and risk perception.