- The Reserve Bank of India (RBI) has imposed a penalty of ₹31.80 lakh on HSBC for failing to comply with certain regulatory requirements.
- The action follows a statutory inspection carried out by the RBI based on the bank’s financial position as of March 31, 2025.
- During the review, it was found that HSBC had not maintained a searchable database of unclaimed deposits on its website, which is mandatory under RBI guidelines.
- Additionally, the bank failed to generate and assign Unclaimed Deposits Reference Numbers (UDRN) for some deposits that were transferred to the Depositor Education and Awareness (DEA) Fund.
- The RBI clarified that the penalty is strictly related to regulatory and compliance shortcomings.
- It does not question the validity of any transactions or agreements made by the bank with its customers.
- The central bank also noted that this monetary penalty is independent of any further action that may be taken against HSBC in the future.
Source: Business-Standard.