Reserve Bank pays Rs 10 crore to HDFC Bank for lack of regulatory compliance in vehicle loan account Bust (Whistle Blower) has been fined after investigating the complaint. The complaint alleges that there were irregularities in the bank’s vehicle loan account. An order to impose a fine was issued on May 27. In a statement issued on Friday, the Reserve Bank said it had fined HDFC Bank Rs 10 crore for violating certain provisions of the Banking Regulation Act of 1949.
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In its investigation, RBI found that HDFC Bank did not follow the rules for vehicle lending. HDFC was given notice and the Central Bank was asked to give reasons for the entire issue. The RBI has stated in its notes that it should not be penalized for violating instructions. HDFC Bank’s Auto Port Folio is accused of forcing customers to buy GPS devices with auto loans.
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The RBI’s FDFC did not respond to the bank’s notice. Also, during the investigation, it became clear that the bank did not follow the rules. And this overall evidence was also sufficient. Thereafter, a fine was imposed.