RBI Imposed Rs 31.80 Lakh Penalty on HSBC for Non-Compliance with Deposit Norms
In March 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of Rs. 31.80 lakh on Hongkong and Shanghai Banking Corporation Limited, India (HSBC India) for non-compliance with regulatory directions related to inoperative accounts and unclaimed deposits.
Overview of RBI Penalty:
Violations: The bank failed to maintain a searchable database of unclaimed deposits, did not generate Unclaimed Deposits Reference Number (UDRN), and showed lapses in deposits transferred to the Depositor Education and Awareness (DEA) Fund, under Section 26A of the Banking Regulation Act, 1949.
Penalty: The monetary penalty is imposed solely for deficiencies in statutory and regulatory compliance to ensure adherence to RBI norms and protect depositor interests, without affecting customer transactions and without prejudice to further action.