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RBI imposes ₹1.73cr penalty on HSBC
May 09, 2023
The Reserve Bank of India on Monday said it has imposed a penalty of ₹1.73 crore on HSBC for non-compliance with norms. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the Reserve Bank of India (RBI) said in a statement.
The Statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by the RBI with reference to its financial position as of March 31, 2021, and the examination of the risk assessment report and all related correspondences pertaining to the same revealed, it noted.
The bank in contravention of the RBI’s rules furnished incorrect credit information in respect of several expired credit cards with nil dues to all four credit information companies.
“In furtherance to the same, a notice was issued to the bank, advising it to show cause as to why penalty should not be imposed for contravention of the said provisions of CIC Rules, as stated therein,” it said.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of contravention of the aforesaid CIC Rules was substantiated and warranted the imposition of a monetary penalty, it said.
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