Source: BS
Context:
In March 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹31.80 lakh on HSBC India for non-compliance with regulatory guidelines related to inoperative accounts and unclaimed deposits.
Key Violations Identified
The RBI flagged multiple compliance lapses:
- Failure to maintain a searchable database of unclaimed deposits
- Non-generation of Unclaimed Deposits Reference Number (UDRN)
- Irregularities in transferring funds to the Depositor Education and Awareness (DEA) Fund
- Violation of provisions under the Banking Regulation Act, 1949 (Section 26A)
About DEA Fund and UDRN
- DEA Fund:
- Managed by RBI
- Holds unclaimed deposits after a specified inactive period
- Used for investor awareness and protection initiatives
- UDRN (Unclaimed Deposits Reference Number):
- Unique identifier for tracking unclaimed deposits
- Ensures transparency and ease of retrieval for depositors
Nature of the Penalty
- The penalty is regulatory and corrective in nature
- Imposed for deficiencies in compliance, not fraud
- Does not impact customer transactions or deposits
- Does not preclude further supervisory action if required
