RBI Penalizes HSBC for Non-Compliance

Mumbai, Mar 20 (PTI) The Reserve Bank on Friday said it has imposed a Rs 31.8 lakh penalty on Hongkong and Shanghai Banking Corporation for non-compliance with certain directions on inoperative accounts and unclaimed deposits.

In a statement, the Reserve Bank said a statutory inspection for supervisory evaluation of the bank was conducted with reference to its financial position as of March 31, 2025.

Based on supervisory findings of non-compliance with the provisions of RBI directions and related correspondence, a notice was issued to the bank.


After considering the bank's reply to the notice, additional submissions and oral submissions made during the personal hearing, the RBI said it found that the charges against the bank were sustained, warranting the imposition of a monetary penalty.

"The bank did not host a searchable database of unclaimed deposits on its website and generate and assign an Unclaimed Deposits Reference Number (UDRN) to certain unclaimed deposits transferred to the 'Depositor Education and Awareness' (DEA) Fund," it added.

The central bank, however, added that the penalty is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Hongkong and Shanghai Banking Corporation with its customers.

Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by the RBI against the bank, the statement added.