HDFC Bank Faces Two RBI Penalties in 2025 for Regulatory Lapses

HDFC Bank, India’s largest private-sector lender, has received two separate monetary penalties from the Reserve Bank of India (RBI) in 2025 for different regulatory lapses. Both actions were disclosed under Regulation 30 of SEBI Listing Regulations, outlining the nature of violations, dates, amounts, and implications for the bank.

Penalty of ₹4.88 Lakh Imposed in July 2025

On July 11, 2025, the RBI issued a speaking order imposing a penalty of ₹4,88,000 on HDFC Bank. This action relates to a loan disbursed in November 2021, where the bank was found in contravention of Paragraph 9.3.6 of the Master Direction – Foreign Investment in India (2018).

The penalty was imposed under Section 11(3) of the Foreign Exchange Management Act (FEMA), 1999. This violation pertained specifically to non-compliance with RBI’s guidelines governing foreign investment transactions.

The bank clarified that the penalty amount represents the total financial impact and that normal business operations remain unaffected.

Second Penalty of ₹0.91 Crore Imposed in November 2025

A second, larger penalty was levied in November. Through an order dated November 18, 2025, received by the bank on November 28, 2025, the RBI imposed a monetary penalty of ₹0.91 crore.

This action was taken under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. 
The penalty relates to the financial position of HDFC Bank as on March 31, 2024, and includes multiple violations.

HDFC Bank stated that it has undertaken corrective actions to address these issues. Its subsidiary, HDB Financial Services (HDBFS), which was also involved in the observed lapses, has implemented corrective measures as well.

Also Read: RBI Penalises HDFC Bank ₹91 Lakh for Non-Compliance in KYC, Outsourcing and Lending Norms!

HDFC Bank Share Price Performance

On December 2, 2025, HDFC Bank share price (NSE: HDFCBANK) opened at ₹988.00, touching the day’s low at ₹985.00, as of 12:16 PM on the NSE.

Conclusion

The two penalties highlight increased regulatory scrutiny in the banking sector, especially regarding adherence to operational, compliance, and risk-management norms. HDFC Bank has confirmed that all corrective measures are now in place, and both the bank and HDBFS are currently compliant with the relevant RBI directions.

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