Penalty on HDFC: The Reserve Bank of India (RBI) has imposed a penalty of ₹91 lakh on HDFC Bank for violating the provisions of the Banking Regulation Act, 1949, and for non-compliance with RBI directives relating to interest rates, outsourcing of financial services, and KYC norms.
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Penalty on HDFC Bank: The Reserve Bank of India (RBI) has taken major action against the country’s largest private sector bank, HDFC Bank. The central bank has imposed a fine of Rs 91 lakh. The RBI has imposed this fine due to violations of several regulatory and statutory rules found in the bank. The RBI says that deficiencies have been found in important processes like Know Your Customer (KYC), Interest Rate on Advances, and Outsourcing Guidelines.
According to media reports, the RBI said that this penalty has been imposed for the bank’s failure to comply with interest rate guidelines, risk management rules in financial services outsourcing, and KYC compliance. This order was issued by the RBI to the bank on November 18, 2025, which was received via email on November 28, 2025. The bank has stated that the penalty will not affect any of its customer services.
Find out why the fine was imposed.
According to the RBI, in many cases, KYC compliance work within the bank was outsourced, which is a serious matter from the banking regulatory perspective. According to regulations, the bank has ultimate responsibility for sensitive and critical tasks like KYC, but HDFC Bank had outsourced it to external agents.
This action follows the RBI’s annual Statutory Inspection for Supervisory Evaluation. Furthermore, the RBI investigation revealed that the bank had applied multiple benchmarks within the same loan category, a violation of regulatory guidelines. This meant that there was a lack of uniformity and transparency in the interest rate setting process.
Stock Performance
HDFC Bank shares closed down 0.28% at ₹1,006.70 on Friday. Over the past year, the stock has gained 12.28%.
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