RBI imposes Rs 5 lakh penalty on HDFC for non-compliance of norms

The Reserve Bank of India (RBI) on Friday, March 17, said it has imposed a monetary penalty of Rs 5 lakh on Housing Development Finance Corporation Ltd (HDFC) for non-compliance with certain provisions of the housing finance companies' directions.

"This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers," the RBI said in a statement.

"The statutory inspection of the company was conducted by NHB with reference to its financial position as on March 31, 2020, and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, that the company failed to transfer matured deposits of certain depositors to designated bank accounts of such depositors during the period 2019-20," it said.