HDFC Bank served a Rs 75 lakh penalty by RBI over non-compliance with KYC norms

Reserve Bank of India

The Reserve Bank of India has imposed a monetary penalty of Rs 75 lakh on HDFC Bank for non-compliance with certain directions of the regulator’s Know Your Customer (KYC) guidelines, RBI said on March 26.

RBI said that HDFC Bank did not categorise certain customers into low, medium or high risk category, based on its assessment and risk perception, and allotted multiple customer identification code to certain customers instead of a Unique Customer ldentification Code (UCIC) for each customer.

The regulator had also conducted a statutory ‘Inspection for Supervisory Evaluation’ of the bank, based on its financial position as on March 31, 2023.

The RBI also imposed a Rs 10 lakh penalty on KLM Axiva Finvest, a non-deposit taking middle layer NBFC, for non-compliance with requirements relating to ‘declaration of dividends’ contained in the ‘Reserve Bank of India (NBFC – Scale Based Regulation) Directions, 2023’. KLM Axiva Finvest was penalized as the company declared a dividend for the financial year 2023-24 despite not meeting the minimum prudential requirements in each of the last three financial years, RBI said.