Reserve Bank imposes Rs 10 crore penalty on HDFC Bank
Mumbai, May 28: The Reserve Bank has imposed a penalty of Rs 10 crore on HDFC Bank for deficiencies in regulatory compliances with regard to its auto loan portfolio.
The penalty has been slapped after examining a complaint by a whistleblower regarding irregularities in the auto loan portfolio of the lender. The order imposing the fine was issued on May 27.
In a statement on Friday, the Reserve Bank of India (RBI) said it has imposed a monetary penalty of Rs 10 crore on HDFC Bank for contraventions of certain provisions of the Banking Regulation Act, 1949.
The apex bank said an examination of documents in the matter of marketing and sale of third-party non-financial products to the bank's customers, arising from a whistleblower complaint to it regarding irregularities in the auto loan portfolio of the bank, revealed contravention of the provisions of the Act and the regulatory directions.
In furtherance to the same, RBI said a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for the contraventions.
After considering the bank's reply to the show cause notice, oral submissions made during the personal hearing and examination of further clarifications/ documents furnished by the bank, RBI came to the conclusion that the contraventions were "substantiated and warranted imposition of monetary penalty", the statement said.
RBI also made it clear that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by HDFC Bank with its customers.
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Allahabad HC orders probe into 'reinstatement' of teacher in UP's Barabanki
Lucknow (PTI): The Lucknow Bench of the Allahabad High Court on Friday ordered a probe by the special task force (STF) into alleged irregularities in the rejoining of a teacher at City Intermediate College in Barabanki, observing that the reinstatement appeared to be prima facie illegal.
The court also directed the recovery of the salary paid to the teacher during the disputed period.
A bench of Justice Rajeev Singh passed the order on a petition filed by the college management committee. The court expressed doubts over the roles of the District Inspector of Schools (DIOS), Barabanki, the college principal and the teacher concerned and hence, directed a detailed inquiry into the matter.
Taking note of alleged manipulation of records and misleading submissions, the court ordered the immediate transfer of the Barabanki DIOS to ensure a fair probe. It also directed the initiation of disciplinary proceedings against the then joint director of education of the Ayodhya division.
In its order, the court found that the teacher, Abhay Kumar, was initially appointed as an assistant teacher in 2018 but joined an Eklavya Model Residential School in Chhattisgarh as a lecturer in June 2024 without obtaining permission from the management. His subsequent request to retain the lien was rejected.
Despite this, he was allowed to rejoin the Barabanki College in September 2025 on the directions of the joint director of education and the DIOS, and was even paid the salary for October 2025. The court termed the rejoining "wholly illegal" and lacking any legal basis.
The bench also expressed concern over lapses in communication within the education department and directed the Uttar Pradesh chief secretary to ensure that official orders are communicated through email and WhatsApp as well, to prevent disputes.
The matter is next listed for hearing on May 28 when a compliance report is sought.
