Skip to content
Free updates Login
BankingNABARD / RBI

RBI Fines Amex Banking Corp and HDB Financial Services

7 October 20251 min read
BANKING & FINANCERBI Fines AmexBanking Corp andHDB FinancialServices7 October 2025safalsetu.com

Why in the news

After inspections found lapses, RBI imposed monetary penalties on American Express Banking Corp and HDB Financial Services Ltd.

EntityPenaltyRule breachedLapse
American Express Banking Corp₹31.80 lakhCredit Card and Debit Card – Issuance and Conduct DirectionsCustomer credit balances not reversed promptly
HDB Financial Services Ltd₹4.2 lakhKnow Your Customer (KYC) Directions, 2016PAN or Form 60 missing on some loan accounts

Norms involved

  • Card Directions, 2022: timely reversal of failed transactions and clear customer communication.
  • KYC Directions, 2016: verified identity, including PAN or equivalent, before loans or accounts.
  • Banking Regulation Act, 1949: RBI fines after inspection and due process, including a show-cause notice.

Exam angle

  • Match fine to entity.
  • Documents: PAN, Form 60.

Test yourself

1. What penalty did RBI impose on American Express Banking Corp?

The notes record ₹31.80 lakh for Amex.

2. HDB Financial Services Ltd was penalised by RBI for not obtaining which documents on certain loan accounts?

The lapse was failing to take PAN or Form 60 under the KYC Directions.

3. Under which Act can RBI levy monetary penalties after inspection and a show-cause process, per this report?

The penalty framework is given as the Banking Regulation Act, 1949.

This topic is part of Daily Current Affairs 7 October 2025 (15 topics).

All topics of the dayDay quizOctober 2025

Read more