The Reserve Financial institution Monday stated it has imposed a financial penalty of ₹1.73 crore on HSBC for contravention of Credit score Data Corporations Guidelines, 2006 (CIC Guidelines).
The Hongkong and Shanghai Banking Company Ltd (HSBC) furnished incorrect credit score data in respect of a variety of expired bank cards with nil dues to all 4 credit score data corporations, the apex financial institution stated.
“The examination of the Danger Evaluation Report and all associated correspondences pertaining to the identical revealed, inter alia, contravention of the aforesaid guidelines by the financial institution to the extent that it furnished incorrect credit score data in respect of a variety of expired bank cards with nil dues, to all of the 4 Credit score Data Corporations,” the RBI launch stated.
“The Statutory Inspection for Supervisory Analysis (lSE) of the financial institution was carried out by RBI with regards to its monetary place as on March 31, 2021, and the examination of the Danger Evaluation Report and all associated correspondences pertaining to the identical revealed, inter alia, contravention of the aforesaid guidelines by the financial institution,” the central financial institution stated.
Additional, a discover was issued to the financial institution advising it to indicate trigger as to why penalty shouldn’t be imposed for contravention of the stated provisions of CIC guidelines, the discharge added.
After contemplating the financial institution’s reply to the discover and oral submissions made throughout the private listening to, the RBI got here to the conclusion that the cost of contravention of the aforesaid CIC Guidelines was substantiated and warranted imposition of financial penalty, the discharge stated.
“This motion relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its prospects,” the central financial institution stated.
The RBI imposed the penalty within the train of powers vested within the banking regulator conferred beneath the provisions of Part 25 (1) and Part 23 (4) of the Credit score Data Corporations (Regulation) Act, 2005.
Up to date: 08 Might 2023, 08:16 PM IST