HDFC Bank Limited, on Friday, announced that its Dubai International Financial Centre (DIFC) branch has received a formal directive from the Dubai Financial Services Authority (DFSA), imposing restrictions on onboarding new clients.
The Decision Notice, dated September 25, 2025, bars the DIFC branch from soliciting or conducting business with new clients who had not completed the onboarding process by that date. The restrictions cover a range of financial services activities, including advising on financial products, arranging investment deals, arranging or advising on credit, and custody-related services.
Moreover, the branch has been prohibited from engaging in financial promotions or onboarding new clients. However, existing clients can continue to be serviced, and clients who had previously received financial services but were not formally onboarded may still be accommodated.
The directive, effective from September 26, 2025, will remain in place until the DFSA issues an amendment or revocation in writing.
The DFSA cited concerns related to financial services provided to clients not properly onboarded and issues in the branch’s onboarding processes.
HDFC Bank has clarified that the DIFC branch’s operations are not material to the bank’s overall financial position, and no significant financial impact is expected.
As of September 23, 2025, the branch had 1,489 onboarded customers, including joint holders.
The bank further mentioned that it has already begun implementing measures to comply with the DFSA’s directives and is cooperating with the regulator to address concerns promptly.
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