RBI Slaps Rs 10 Lakh Penalty On HDFC Bank For This Reason
Reserve Bank of India or RBI has imposed a penalty of Rs 10 lakh on India’s biggest private bank: HDFC Bank.
As per the notifications issued by Reserve Bank of India, this penalty was imposed on HDFC Bank as they failed to maintain minimum capital required in SGL, which resulted in bouncing of SGL.
In their notification, RBI said, “The RBI has, vide its letter dated December 4 (which was received by the bank on December 9), imposed a monetary penalty of ?10 lakh on the bank for bouncing of SGL, which lead to shortage of balance in certain securities in the bank’s CSGL account on November 19,”
HDFC Bank has assured that such mistakes and errors won’t happen again.
SGL or Subsidiary General Ledger contain details of all transactions happening in a bank, and a certain threshold of balance should be always present there.
We will keep you updated, as more details come in.