Which bank was penalized by the Reserve Bank of India in March 2026 with a ₹31.80 lakh fine for not complying with rules related to inoperative accounts and unclaimed deposits?
HSBC India
The Reserve Bank of India regulates banks and can impose monetary penalties under the Banking Regulation Act, 1949, when a bank fails to comply with its directions. Such penalties relate to regulatory compliance and do not affect the validity of the bank's transactions with customers.
Under RBI rules, a savings or current account with no customer-induced transaction for over two years is treated as inoperative, and banks must follow set procedures for such accounts. Deposits that remain unclaimed for ten years or more are transferred to the Depositor Education and Awareness (DEA) Fund.
In March 2026, the RBI imposed a penalty of ₹31.80 lakh on HSBC India, the Indian operations of the Hongkong and Shanghai Banking Corporation, for not complying with these rules on inoperative accounts and unclaimed deposits.
State Bank of India, ICICI Bank and HDFC Bank were not the bank penalised in this case of ₹31.80 lakh in March 2026.
Hence, HSBC India.
Similar Questions
What action did the Monetary Policy Committee take regarding the repo rate in June 2026?
In its Monetary Policy Committee (MPC) meeting held in February 2026, the RBI kept the repo rate unchanged and retained its policy stance as which of the following, despite one member dissenting in favour of a more accommodative approach?
At its August 2026 meeting, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at what percentage?
Important Questions from Banking Affairs
- The Department of Financial Services (DFS) notified amalgamation of 26 Regional Rural Banks (RRBs) on the principles of 'One State One RRB' in which phase of amalgamation of RRBs in 2025?
- Which of the following organisations launched the Fiscal Health Index for India in 2025?
- On which theme did the Reserve Bank of India (RBI) organise a conference for large-sized Non-Banking Financial Companies (NBFCs) in Chennai on 28 March 2025?
Reserve Bank of India advised all banks in India to commence the migration of their existing domains to the '.bank.in' domain and complete the process latest by _________________
- In May 2025, the Reserve Bank of India (RBI) approved the renaming of the North East Small Finance Bank to ________.
