RBI penalizes HDFC Bank for regulatory non-compliance

HDFC Bank announced on November 28, 2025, that the Reserve Bank of India (RBI) has imposed a penalty of INR 91,00,000. The penalty stems from an order issued on November 18, 2025, pertaining to the bank’s financial position as of March 31, 2024. The RBI exercised its powers under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, to levy this penalty.

The violations include contraventions of directions related to the Reserve Bank of India (Interest Rate on Advances) Directions, 2016, and guidelines on managing risks and code of conduct in outsourcing of financial services by banks. These were specifically Paragraph 2 of Annex to the RBI circular dated November 3, 2006, read with Paragraph 8(b) of the Reserve Bank of India (Know Your Customer) Directions and Section 19(1)(a) read with Section 6(1) of the Banking Regulation Act, 1949.

HDFC Bank confirmed that it has undertaken corrective actions to address the issues. Additionally, HDB Financial Services (HDBFS) has also taken corrective measures, and both entities assert their compliance with the aforementioned directions as of the current date.