The RBI said in a statement that the move was based on “regulatory deficits”. Not in the case of bank transactions or any agreement with the customer. ” The statement also said that a survey of documents on sale and marketing of third party non-financial products to the bank’s customers has been conducted to ascertain whether the banking rules are in compliance with HDFC. There have been reports of non-compliance with the provisions of the Control Act.
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The RBI said a show-cause notice had been sent to the bank earlier. However, some documents were verified during the hearing as they were not satisfied for that reason. Subsequently, the above allegations of violation of banking laws have been lodged. Accordingly, the rules of financial penalty have been imposed on the private bank.
According to the Banking Act, no bank can directly or indirectly conduct transactions regarding purchase and sale of goods.
Last year, the RBI directed HDFC Bank to suspend credit card disbursements and not introduce new digital banking services. On November 21, many customers of the country’s largest private bank suffered digital service disruptions. After that the RBI issued strict rules.
