RBI Action on HSBC Bank: The Reserve Bank of India (RBI) has as soon as once more taken motion towards a financial institution for violating its guidelines. In the most recent case, HSBC Bank has been fined Rs 1.73 crore for violating the Credit Information Company Rules 2006 (CIC Rules). The central financial institution has accused the financial institution of offering incorrect details about its bank cards to credit score data corporations. The investigation performed by the RBI has revealed that the financial institution additionally gave unsuitable details about its expired bank cards. In this text, we’ll focus on the main points of the RBI motion on HSBC Bank and the penalties imposed on different cooperative banks.
HSBC Bank fined for offering unsuitable details about bank cards:
According to the RBI, HSBC Bank has violated the CIC Rules by offering incorrect details about its zero steadiness bank cards to 4 credit score data corporations. The financial institution has additionally given unsuitable details about its expired bank cards. The RBI has imposed a hefty positive of Rs 1.73 crore on the financial institution for violating its guidelines.
RBI inspection finds HSBC Bank not following bank card guidelines:
The RBI had performed an inspection of HSBC Bank’s monetary place until March 31, 2021, as a part of its surveillance investigation. The inspection discovered that the financial institution just isn’t following lots of RBI’s guidelines associated to bank cards. The RBI has issued a present trigger discover to HSBC Bank, asking why it has not supplied right data as per the CIC Rules.
Cooperative banks additionally face penalties:
Apart from HSBC Bank, the RBI has additionally imposed penalties on two cooperative banks for flouting its guidelines. The Trichur Urban Cooperative Bank Limited has been fined Rs 2 lakh for ignoring the foundations associated to gold loans. The Bhilai Nagarik Sahakari Bank has been fined Rs 1.25 lakh for not depositing cash on time within the Depositor Education and Awareness Fund Scheme (DEAF Scheme) for unclaimed deposits.
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