Reserve Bank of India imposed a fine of Rs 29.6 lakh on HSBC

Mumbai. RBI on Friday imposed a fine of Rs 29.6 lakh on Hongkong and Shanghai Banking Corporation Limited (HSBC) for non-compliance of certain instructions related to cards. The central bank said in a statement that this fine has been imposed on HSBC for non-compliance of certain instructions issued by the Reserve Bank of India (RBI) on “banks’ credit card, debit card and rupee denominated co-branded prepaid card operations”. According to RBI, statutory inspection (ISE 2022) was conducted by it for supervisory assessment in respect of the financial position of the bank as on March 31, 2022.

It found that the RBI directions were not followed. Based on the relevant correspondence in that regard, a notice was issued to the bank, asking it to show cause and why it should not be fined for failing to comply with the said directions. RBI said that after considering the bank’s reply to the notice, oral reply given during personal appearance and additional information provided by it, it found that, among other things, the allegations against the bank were proved which warranted imposition of monetary penalty.

It said, “The bank failed to ensure that there was no negative amortization while calculating the minimum payment due in certain credit card accounts.” However, RBI said that this penalty is based on deficiencies in statutory and regulatory compliance. It is not intended to question the validity of any transaction or agreement made by the bank with its customers. Moreover, the imposition of monetary penalty will not have any adverse effect on any other action initiated by RBI against the bank.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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