Reserve Bank has been brought up the biggest problem for the private sector of India. The RBI made a blast on the HDFC bank by imposing a fine of rupees 10 crores, the news has been confirmed on May 28, 2021. While the amount might not be big for the HDFC bank, it clarifies that the bank must have done the biggest scam.
To know the reason behind imposing a fine of Rs 10 crore on the HDFC bank by the RBI then read the full article:-
Reserve Bank of India imposes the fine for breach under the provisions, Banking Regulation Act 1949.
Whereas the central bank has been stated that, “we have been notices the deficiencies in the regulatory compliances which have been related to the portfolio of auto loans.”
The fine has been foist on the bank after a person uses to informed or complaint to the central bank of the country (Reserve Bank Of India) regarding the irregularities and irresponsible behavior of HDFC in the auto loan portfolio of the moneylender.
The Reserve Bank of India stated that “Our purpose isn’t to announce or highlight the validity and the sustainability of any transaction which jas been made by the lender or the customer.”
RBI imposed penalty under the provision sections of:-
- Section 47A(1)(C)
- Section46(4)(i)
Statement by the Apex bank has been exclaimed that after analyzing the documents regarding the matter of sale and marketing to the ender of the bank who complain against the registries performances of the HDFC bank drags it into the penalty.
In the further statements, the central bank asks the HDFC bank that they must have mentioned a valid reason, why RBI shouldn’t impose a fine on them for the contravention. As per the date, RBI also made the announcement and made it clear for ht HDFC that the action will e based on the deficiency in regulatory compliance. It will not be upon the validity of any contract, transition, and agreement of the HDFC that happened with the customers.
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