NEW DELHI: The Reserve Bank of India (RBI) on Friday imposed Rs 10 crore fine on HDFC Bank for contravention of certain provisions of the Banking Regulation Act, 1949.
In an official statement, the central bank said that the action is based on deficiencies in regulatory compliance and will in no way impact its dealing with customers. The action is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.
The penalty has been imposed in exercise of powers vested in the RBI under provisions of section 47A(1)(c) read with section 46(4)(i) of the Act, the statement further said.
HDFC Bank Penalty: SEBI imposes fine of Rs 1 crore, here s how this will affect you
SEBI has imposed Rs 1 crore penalty on HDFC Bank because it has sold some of the mortgaged shares of BRH Wealth Kreators.
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Updated: Jan 23, 2021, 11:38 AM IST
If your bank account is in HDFC Bank, then this news is very important for you as Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stock broker BRH Wealth Kreators. The SEBI has imposed the penalty for violation of its interim directions.
SEBI has imposed this penalty on HDFC Bank because it has sold some of the mortgaged shares of BRH Wealth Kreators, which is in violation of the interim order of SEBI. In an order, SEBI has also directed the bank to deposit interest of Rs 158.68 crore held in an escrow account and 7% per annum till a decision is reached in the case.