RBI Action on HSBC Bank: The Reserve Bank of India (RBI) has once again taken action against a bank for violating its rules. In the latest case, HSBC Bank has been fined Rs 1.73 crore for violating the Credit Information Company Rules 2006 (CIC Rules). The central bank has accused the bank of providing incorrect information about its credit cards to credit information companies. The investigation conducted by the RBI has revealed that the bank also gave wrong information about its expired credit cards. In this article, we will discuss the details of the RBI action on HSBC Bank and the penalties imposed on other cooperative banks.
HSBC Bank fined for providing wrong information about credit cards:
According to the RBI, HSBC Bank has violated the CIC Rules by providing incorrect information about its zero balance credit cards to four credit information companies. The bank has also given wrong information about its expired credit cards. The RBI has imposed a hefty fine of Rs 1.73 crore on the bank for violating its rules.
RBI inspection finds HSBC Bank not following credit card rules:
The RBI had conducted an inspection of HSBC Bank's financial position till March 31, 2021, as part of its surveillance investigation. The inspection found that the bank is not following many of RBI's rules related to credit cards. The RBI has issued a show cause notice to HSBC Bank, asking why it has not provided correct information as per the CIC Rules.
Cooperative banks also face penalties:
Apart from HSBC Bank, the RBI has also imposed penalties on two cooperative banks for flouting its rules. The Trichur Urban Cooperative Bank Limited has been fined Rs 2 lakh for ignoring the rules related to gold loans. The Bhilai Nagarik Sahakari Bank has been fined Rs 1.25 lakh for not depositing money on time in the Depositor Education and Awareness Fund Scheme (DEAF Scheme) for unclaimed deposits.
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