RBI Slaps Penalties on American Express and HDB Financial Services for Non-Compliance

The Reserve Bank of India imposed penalties on American Express Banking Corp and HDB Financial Services for non-compliance with certain regulatory directions. American Express was fined Rs 31.80 lakh for issues relating to credit card transactions, while HDB faced a Rs 4.2 lakh penalty for KYC non-compliance.

The Reserve Bank of India (RBI) penalized American Express Banking Corp and HDB Financial Services for regulatory non-compliance issues. American Express received a Rs 31.80 lakh penalty regarding credit card transactions, following a supervisory evaluation.

The fine was imposed after the bank failed to address credit balances resulting from failed or reversed transactions. RBI reiterated that the penalty reflects regulatory lapses and is not a judgment on any specific transaction.

HDB Financial Services faced a Rs 4.2 lakh penalty for failing to obtain required PAN or equivalent documentation for certain loans. Similar to American Express, the penalty addresses regulatory infractions, not transaction validity.

(With inputs from agencies.)