RBI penalized HDFC with 10Cr

The reserve bank of India on Friday finded HDFC bank 10Cr. for irregularities found in its auto loan book.he regulator found the bank deficient in compliance the RBI that after receiving a complaint from a whistleblower it had conducted an examination in the marketing and sales of third-party non-financial product to the banks auto loan customer.

The regulator said that it had found that the bank was in contravention of regulatory directions The RBI has imposed a mandatory penalty of 10Cr. on HDFC bank for contravention of provision of section 6(2) & section 8 of the Banking Regulation Act.  Last year it was revealed that some employees at the auto loan department allegedly forced customer to buy a GPS device bundled with the car loans it was found that some customers were not even aware of purchasing such a product tell the loan documents were checked.

These errant employee started forcefully bundling the GPS devices in the car loan to meet sales target and potential track borrowers in the event of a default. S-ET

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