RBI Imposes Rs 91 Lakh Penalty on HDFC Bank for Banking Regulation Act Violations and KYC Compliance Issues

Nov 29, 2025 12:00 am CST

The Reserve Bank of India has imposed a Rs 91 lakh penalty on HDFC Bank for violating the Banking Regulation Act and non-compliance with directives related to interest rates, outsourcing financial services, and KYC norms. The penalty follows a statutory inspection of the bank's financial position as of March 2024, which revealed multiple regulatory deficiencies including the adoption of multiple benchmarks within the same loan category and improper outsourcing of KYC compliance verification.