RBI Penalizes HSBC with Rs 29.6 Lakh Fine for Card Compliance Issues
The Reserve Bank of India (RBI) has fined The Hongkong and Shanghai Banking Corporation Limited (HSBC) Rs 29.6 lakh for failing to comply with directives related to credit, debit, and prepaid card operations. The penalty follows a Supervisory Evaluation and subsequent correspondence regarding these non-compliances.
![RBI Penalizes HSBC with Rs 29.6 Lakh Fine for Card Compliance Issues](https://devdiscourse.blob.core.windows.net/aiimagegallery/19_06_2024_11_43_12_508692.png)
- Country:
- India
The Reserve Bank of India (RBI) has levied a penalty of Rs 29.6 lakh on The Hongkong and Shanghai Banking Corporation Limited (HSBC) for failing to adhere to specific regulations governing card operations.
This action comes after a Supervisory Evaluation (ISE 2022) revealed that HSBC had not complied with directives issued by the RBI concerning Credit Card, Debit Card, and Rupee Denominated Co-branded Pre-paid Card operations of Banks.
In a statement, the RBI highlighted that the bank failed to prevent negative amortization while calculating the Minimum Payment Due in some credit card accounts. This has led to the imposition of the penalty, which is strictly tied to statutory and regulatory deficiencies rather than the legitimacy of any transactions between the bank and its customers.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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- RBI
- HSBC
- penalty
- credit card
- debit card
- compliance
- fine
- monetary
- banking
- Supervisory Evaluation
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