India's RBI fines HSBC ₹31.8 lakh over unclaimed deposits and dormant-account lapses
Change
India's RBI imposed a ₹31.8 lakh monetary penalty on Hongkong and Shanghai Banking Corporation for failing to host a searchable unclaimed-deposits database and for not issuing Unclaimed Deposits Reference Numbers (UDRN) when transferring funds to the Depositor Education and Awareness (DEA) Fund following a statutory inspection with reference date March 31, 2025.
Why it matters
Banks operating in India are now subject to enforceable operational requirements to publish customer-searchable records of unclaimed deposits and to assign UDRNs on transfers to the DEA Fund. Failure to meet these recordkeeping and traceability requirements exposes institutions to monetary penalties and the possibility of escalated regulatory measures.
Implications
- • Compliance teams at banks operating in India must publish and maintain a searchable online unclaimed-deposits database on the bank website or face monetary penalties in future supervisory inspections.
- • Operations and payments teams that transfer funds to the Depositor Education and Awareness (DEA) Fund must generate and assign a Unclaimed Deposits Reference Number (UDRN) for each transfer or the transfers will be treated as non-compliant and attract regulatory penalties.
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