RBI imposes Rs 29.60 lakh penalty on HSBC Bank for rule violations

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 29.60 lakh on HSBC Bank for rule violations.

The bank didn’t comply with certain directions issued by RBI on “Credit Card, Debit Card and Rupee Denominated Co-branded Pre-paid card operations of banks reiterated in Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022”, the RBI said in a release on June 28.

The central bank further said the bank failed to ensure that there was no negative amortisation while computing minimum payment due in certain credit card accounts.

The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by the bank with its customers, the banking regulator said.