RBI Imposes Rs 10 Lakh Penalty On HDFC Bank

On Thursday, HDFC Bank informed in a stock exchange filing that the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 10 lakh on the private bank for "bouncing of SGL which lead to a shortage of balance in certain securities in the Bank's CSGL account on 19 November 2020."

"The penalty has been imposed by RBI in terms of the RBI Circular No. IDMD.DOD.17/11.01.01 (B) 2010‐11 dated July 14, 2010," it said.

"The Bank has since enhanced its review mechanism so as to ensure that such incidents do not recur," it added.

The bank received the order on 9 December and the disclosure was made on 10 December, after market hours.

Shares of HDFC Bank opened higher at Rs 1,390.05 on Friday.

Recently, the stock's valuation declined after RBI announced a halt on the launch of the bank's digital business generating activities planned under its program Digital 2.0 and sourcing of new credit card customers.

HDFC Bank informed analysts that improving the architectural efficiency of its IT systems would take three months while it would take six weeks to automate switchover to disaster recovery system.