HDFC Bank and Shriram Finance Fined Rs7.58 Lakh by RBI for Non-compliance
Moneylife Digital Team 14 July 2025
Reserve Bank of India (RBI) has imposed penalties of Rs7.58 lakh on HDFC Bank Ltd and Shriram Finance Ltd, a non-banking financial company (NBFC), for non-compliance with the directions issued by the banking regulator. HDFC Bank was fined Rs4.88 lakh while Shriram Finance has been penalised Rs2.70 lakh.
 
HDFC Bank has been penalised for contravention of RBI’s master direction on foreign investment in India, while granting a term loan to its client.
 
On the other hand, Shriram Finance has been fined for failing to comply with provisions of the RBI’s digital lending directions.
 
RBI's statutory inspection of Shriram Finance revealed that the NBFC routed the loan repayments through the account of a third party, instead of the borrowers directly crediting the loan repayments to the company’s account.
 
"After considering the reply and oral submissions of HDFC Bank and Shriram Finance during the personal hearing, RBI concluded that the charges of non-compliance with directions were substantiated and warranted imposition of monetary penalty," RBI says.
 
In both cases, RBI says the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced on the validity of any transaction or agreement they entered into with their customer.
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