Reserve Bank of India imposes penalty worth Rs 1.75 crore on HSBC

Mumbai, May 8, 2023

Earlier in April, the central bank had imposed penalties totalling Rs 44 lakh on four cooperative banks

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.73 crore on the Hongkong and Shanghai Banking Corporation (HSBC) for violating the Credit Information Companies Rules.

The supervisory evaluation revealed that the bank furnished incorrect credit information about expired credit cards with nil dues to all the four Credit Information Companies.

Earlier in April, the central bank had imposed penalties totalling Rs 44 lakh on four cooperative banks, including a Rs 16 lakh penalty on Chennai-based The Tamil Nadu State Apex Co-operative Bank, for contravention of various norms. A monetary penalty of Rs 2 lakh was imposed on Baran Nagrik Sahkari Bank, Baran, Rajasthan for contravention of certain norms.

The penalties are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers, the RBI said.

[The Business Standard]