HDFC financial institution: The Reserve Bank of India has imposed a penalty of Rs 1 crore on HDFC Bank for not following the Know Your Customer (KYC) norms. The RBI stated in a launch that the financial institution's supervisory evaluation (2016-17) revealed that HDFC Bank didn’t make the mandatory checks within the 39 present accounts opened by its clients throughout the preliminary public providing bidding.
RBI had issued a discover to the financial institution to clarify the rationale why penalty shouldn’t be imposed for non-compliance. The RBI launch stated that it has been seen that the present account opened within the financial institution transactions account Does not match declared earnings of opening clients. <! –
After contemplating the present trigger discover despatched by the RBI and the reply acquired on it, the Reserve Bank got here to the conclusion of the penalty. It additional acknowledged that the motion is predicated on deficiencies in regulatory compliance and isn’t meant to pronounce the validity of any transaction or settlement entered into by the financial institution with its clients.
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