RBI Fines HSBC ₹31.80 Lakh for Not Following Deposit Rules
The Reserve Bank of India (RBI) has imposed a penalty of ₹31.80 lakh on The Hongkong and Shanghai Banking Corporation Limited for not properly following rules related to inoperative accounts and unclaimed deposits.
What Happened?
This action came after RBI conducted its routine inspection of the bank’s financial position as of March 31, 2025. During the review, the regulator found some gaps in how the bank was handling unclaimed deposits.
RBI then issued a notice asking the bank to explain its position. After reviewing HSBC’s reply and hearing their side, the central bank decided that the lapses were valid and deserved a penalty.
Where Did HSBC Fall Short?
RBI pointed out two key issues:
- The bank did not provide a searchable database of unclaimed deposits on its website
- It also failed to assign UDRN (Unclaimed Deposits Reference Number) to some deposits transferred to the Depositor Education and Awareness (DEA) Fund
These rules are important because they help customers easily find and claim their forgotten or inactive deposits.
Why This Matters
Many people forget about old bank accounts or deposits over time. RBI has made it mandatory for banks to maintain proper systems so customers can track and claim their money easily.
When banks don’t follow these rules, it affects transparency and customer convenience—which is why RBI takes such issues seriously.
RBI’s Clarification
RBI also clarified that:
- This penalty is only for regulatory non-compliance
- It does not affect any customer transactions or agreements
- Further action can still be taken if needed
Final Take
This move shows that RBI is keeping a close watch on banks and ensuring they follow rules that protect customers’ interests.
For customers, it’s a good reminder to check old or inactive accounts and make sure your money isn’t lying unclaimed.
