RBI imposes over Rs 1.73-cr fine on HSBC for wrong credit card data

Mumbai (Maharashtra) [India], May 9 : The Reserve Bank of India (RBI) has imposed a penalty of Rs 1,73,75,000 on The Hongkong and Shanghai Banking Corporation Limited (HSBC Ltd) for the contravention of certain rules under Credit Information Companies Rules, 2006 (CIC Rules).
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 bank with its customers, according to a statement posted on RBI website on Monday evening.
The statutory inspection for supervisory evaluation (lSE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2021, and the examination of the Risk Assessment Report and all related correspondences pertaining to the same, the central bank said.
The ISE of the bank revealed contravention of the aforesaid rules by the bank to the extent that it furnished incorrect credit information in respect of a number of expired credit cards with nil dues, to all credit information companies.
In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the said provisions of CIC Rules, as stated therein.
After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI said it came to the conclusion that the charge of contravention of the aforesaid CIC Rules was substantiated and warranted the imposition of a monetary penalty.