RBI imposes ₹1.73 crore fine on HSBC for wrong credit card data
1 min read 08 May 2023, 08:14 PM ISTThe HSBC furnished incorrect credit information in respect of a number of expired credit cards with nil dues to all four credit information companies, the RBI said
PremiumThe Reserve Bank Monday said it has imposed a monetary penalty of ₹1.73 crore on HSBC for contravention of Credit Information Companies Rules, 2006 (CIC Rules).
The Hongkong and Shanghai Banking Corporation Ltd (HSBC) furnished incorrect credit information in respect of a number of expired credit cards with nil dues to all four credit information companies, the apex bank said.
“The examination of the Risk Assessment Report and all related correspondences pertaining to the same revealed, inter alia, contravention of the aforesaid rules by the bank to the extent that it furnished incorrect credit information in respect of a number of expired credit cards with nil dues, to all the four Credit Information Companies," the RBI release said.
"The Statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2021, and the examination of the Risk Assessment Report and all related correspondences pertaining to the same revealed, inter alia, contravention of the aforesaid rules by the bank," the central bank said.
Further, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the said provisions of CIC rules, the release added.
After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the charge of contravention of the aforesaid CIC Rules was substantiated and warranted imposition of monetary penalty, the release said.
"This 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 the bank with its customers," the central bank said.
The RBI imposed the penalty in the exercise of powers vested in the banking regulator conferred under the provisions of Section 25 (1) and Section 23 (4) of the Credit Information Companies (Regulation) Act, 2005.
