The Reserve Bank of India (RBI) on Friday imposed monetary penalties on HDFC Bank and Shriram Finance for regulatory violations, according to statements. HDFC Bank was fined ₹4.88 lakh for contravention of RBI’s ‘Master Direction – Foreign Investment in India’, while granting a term loan to its client.
“After considering the facts of the case and the response given by HDFC Bank in the matter, the Reserve Bank of India came to the conclusion that the contraventions were established and warranted imposition of penalty,” the regulator said.
Further, the RBI imposed a ₹Rs 2.70 lakh penalty on Shriram Finance for routing loan repayments through the account of a third-party, instead of the borrowers directly crediting the loan repayments to the company’s account.
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company,” the RBI said.
Published on July 11, 2025