REGULATORY · INDIA
RBI fines HSBC ₹31.8 lakh
Change
The Reserve Bank of India imposed a monetary penalty of ₹31.8 lakh on HSBC for non-compliance with rules governing inoperative accounts and unclaimed deposits.
Why it matters
RBI's action followed a statutory inspection referenced to HSBC's financial position as of March 31, 2025. The regulator issued a show-cause notice, allowed written responses and a personal hearing, and determined the charges were substantiated. The inspection found that HSBC did not host a searchable database of unclaimed deposits on its website and failed in certain cases to generate and assign the mandatory Unclaimed Deposits Reference Number (UDRN) when transferring funds to the Depositor Education and Awareness Fund. RBI stated the penalty is based solely on regulatory compliance deficiencies and does not question the validity of customer transactions or agreements.
Implications
- · Immediate financial charge of ₹31.8 lakh recorded against HSBC for the identified compliance lapses.
- · HSBC lacked a searchable unclaimed-deposits database on its website, leaving customers without that accessibility feature.
- · Missing UDRN assignments in some transfers to the Depositor Education and Awareness Fund compromised traceability and transparency of those transfers.
Who is affected
- · Compliance teams
- · Banks
Source
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Banking Regulation