The Reserve Bank of India (RBI) has imposed a fine of ₹1.73 crore on HSBC for failing to comply with regulatory guidelines related to credit card data. According to the RBI, HSBC had violated the norms by submitting incorrect data related to the credit card portfolio of its Indian arm.
The central bank had conducted an inspection of HSBC’s credit card business and had observed certain lapses in the reporting of credit card data. The RBI has stated that HSBC had not reported some of the details related to credit card transactions, which were required to be reported to the Credit Information Companies (CICs).
This non-compliance by HSBC had led to incorrect credit data being reported to the CICs, which could have a negative impact on the credit score of customers. The RBI has stated that such lapses by banks can have serious implications on the creditworthiness of borrowers, and can also impact the credit ecosystem of the country.
The RBI has also stated that HSBC had been given multiple opportunities to rectify the errors, but the bank had failed to comply with the regulatory norms. The central bank has further clarified that the penalty has been imposed after taking into account the severity of the lapses and the bank’s past record of non-compliance.
This is not the first time that HSBC has faced regulatory action in India. In 2019, the RBI had imposed a penalty of ₹1 crore on the bank for not complying with the Know Your Customer (KYC) norms. The central bank has been taking strict action against banks for any lapses or violations of regulatory guidelines, in order to ensure that the banking system remains transparent and trustworthy.
In conclusion, the RBI has imposed a fine of ₹1.73 crore on HSBC for failing to comply with regulatory guidelines related to credit card data. The central bank has stated that such non-compliance can have serious implications on the credit ecosystem of the country, and has been taking strict action against banks for any violations. It is important for banks to comply with all regulatory norms and guidelines to maintain the trust and integrity of the banking system.