RBI: The central bank RBI has imposed a fine of more than 66 lakhs on Hong Kong and Shanghai Banking Corporation Limited i.e. HSBC Bank.
The Reserve Bank of India said on Friday that it has imposed a fine of Rs 66.6 lakh on HSBC Bank for not following the instructions related to ‘Know Your Customer’ and ‘Interest Rate on Deposits’.
Apart from this, IIFL Samasta Finance Limited has also been fined Rs 33.1 lakh for non-compliance of certain provisions of the ‘Non-Banking Financial Company – Systemically Important Non-Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016’ and Know Your Customer (KYC) directions.
In both cases, the RBI said the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
Slowdown in demand for personal loans
According to RBI, personal loan growth slowed to 14.2 percent in the fortnight ended January 24, 2025. The main reason for this slowdown is the weak disbursement of vehicle loans and credit card dues. RBI has prepared the report based on data collected from 41 selected commercial banks regarding sectoral allocation of bank loans.
RBI said that non-food bank credit grew by 12.5 per cent on an annual basis till the fortnight ended January 24, 2025, as against 16.2 per cent in the same fortnight last year. According to the report, “The personal loan section recorded a growth of 14.2 per cent in loans till the fortnight ended January 24, 2025, as against 18.2 per cent a year ago.
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