RBI Imposes Rs 1.73 Crore Penalty On HSBC Bank
The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1.73 crore on the Hongkong and Shanghai Banking Corporation Ltd (HSBC Bank) for violating the Credit Information Companies Rules, 2006. The RBI stated that during their examination of the Risk Assessment Report and all related correspondences pertaining to the same, it was discovered that the bank had breached the aforementioned rules.
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● HSBC had provided inaccurate credit information on various expired credit cards with nil dues to all four Credit Information Companies.
● Consequently, a notice had been issued to the bank advising them to demonstrate why the penalty should not be imposed for contravening the said provisions of CIC Rules, as stated therein.
● Further, after examining the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI arrived at the conclusion that the charge of contravention of the above-mentioned CIC Rules had been substantiated and warranted the imposition of a monetary penalty.
The RBI clarified that this action was intended solely to address deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
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