RBI imposes Rs 29.6 lakh fine on HSBC over non-compliance in card ops
Mumbai: The Reserve Bank of India (RBI) announced it has fined The Hongkong and Shanghai Banking Corporation Limited (HSBC) Rs 29.6 lakh for failing to comply with certain directives regarding card operations.
This penalty relates to non-compliance with RBI’s instructions on 'Credit Card, Debit Card, and Rupee Denominated Co-branded Pre-paid Card operations of Banks,' according to a statement from the central bank.
The RBI conducted a Statutory Inspection for Supervisory Evaluation (ISE 2022) of HSBC, referencing the bank's financial status as of March 31, 2022. Based on findings from this inspection and subsequent correspondence highlighting non-compliance, the RBI issued a notice to HSBC asking why a penalty should not be imposed for these lapses.
After reviewing HSBC's response, oral submissions during a personal hearing, and additional submissions, the RBI determined that the violations were substantiated, justifying the monetary penalty.
"The bank failed to ensure that there was no negative amortisation while computing Minimum Payment Due in certain credit card accounts," it said.
The RBI clarified that the penalty pertains to statutory and regulatory compliance deficiencies and does not reflect on the validity of any transactions or agreements between the bank and its customers.
Further, this monetary penalty is independent of any other potential actions the RBI might take against HSBC.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
