The Reserve Bank of India imposed a monetary penalty of ₹91 lakh on HDFC Bank Limited by an order dated 18 November 2025, following findings from its Statutory Inspection for Supervisory Evaluation that identified three distinct areas of regulatory non-compliance. The inspection reviewed the bank's position as of 31 March 2024, making it part of the ISE 2024 supervisory cycle.
HDFC Bank is India's largest private-sector bank by total assets. The November 2025 penalty is the third the RBI has levied on the bank during this calendar year, after a ₹75 lakh fine in March 2025 over KYC directions and a ₹4.88 lakh fine in July 2025 under FEMA. The bank was given an opportunity to respond to the ISE 2024 findings before the penalty order was finalised, consistent with the statutory procedure the RBI follows for such actions.
THREE AREAS OF REGULATORY CONCERN
The first violation concerns interest-rate benchmark practices. The RBI found that HDFC Bank had adopted multiple benchmarks within the same loan category, a practice that breaches the RBI's directions on 'Interest Rate on Advances'.
The second violation concerns a subsidiary. The RBI found that a wholly-owned subsidiary of HDFC Bank had undertaken business that is not permissible for a bank under Section 6 of the Banking Regulation Act, 1949.
KYC OUTSOURCING
The third violation involves the bank's approach to Know Your Customer compliance. The RBI found that HDFC Bank had outsourced KYC compliance checks to third-party outsourcing agents in contravention of the regulator's directions on the outsourcing of financial services.
The RBI stated that the penalty reflects compliance failures and does not represent a judgement on the validity of any individual transaction between the bank and its customers.