The Reserve Bank of India (RBI) announced on Friday, July 11 that it fined HDFC Bank Rs 4.88 lakh and Shriram Finance Rs 27 lakh because they failed to comply with some central banks’ directives.
“While private sector lenders overlooked the “main direction of India – foreign investment”, the Reserve Bank said in a statement: “While private sector lenders were neglecting “the main direction of India – foreign investment,” the fines were imposed on HDFC banks under Article 11(3) of the Foreign Exchange Administration Act.
“The Reserve Bank of India (RBI) has sent a program notice to the bank and submitted a written reply as HDFC Bank, which has submitted an oral submission on it,” the statement said.
Taking into account the facts of the case and the response from HDFC Bank, RB decided to issue a fine.
Accordingly, the Reserve Bank imposed fines on non-bank financing companies (NBFC) Shriram Finance Limited (NBFC) to violate certain provisions of digital loans.
The central bank said: “The Reserve Bank of India (RBI) imposed a currency fine of Rs 270 crore on Shriram Finance Limited because they did not comply with the Reserve Bank of India (Digital Loan) instructions, “2025” issued by the RBI.
The Reserve Bank of India’s statutory inspection of the company, as of March 31, 2024, regarding the financial status of Shriram Finance.
“Based on the non-compliance of the supervision results of the RBI instructions and relevant communications in this regard, the bank said, “It was notified to indicate why the penalty should not be imposed if it did not comply with the above direction,” the bank said.
The company routes loan repayments through a third-party account instead of directly crediting the loan repayments to the borrower account.
The Reserve Bank said it imposed a fine on Shriram Finance by issuing an order on July 8, 2025.
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