RBI levies INR-3.60-mln penalty on American Express Banking, HDB Fincl Svcs
This story was originally published at 18:59 IST on 3 October 2025
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NEW DELHI – The Reserve Bank of India has imposed a penalty of INR 3.60 million on American Express Banking Corp. and HDB Financial Services Ltd. for non-compliance with norms, the central bank said Friday. Out of this, American Express Banking is liable to a penalty of INR 3.18 million.
The RBI has imposed the penalty on American Express Banking Corp. for non-compliance with norms relating to the issuance and conduct of credit and debit cards. "The bank did not make any efforts to reverse credit balances of certain credit cardholders, arising out of refund/failed/reversed transactions, to their bank accounts," the RBI said in a release.
HDB Financial Services Ltd. is liable to pay a penalty of INR 420,000 for non-compliance with the RBI's norms on Know Your Customer. The company failed to obtain the Permanent Account Number or equivalent document in certain loan accounts disbursed during 2023-24 (Apr-Mar), the RBI said.
On Friday, shares of HDB Financial Services Ltd. ended 1.6% lower at INR 757.10 on the National Stock Exchange. Shares of American Express Banking Corp. are not listed on the Indian bourses. End
Reported by Krity Ambey
Edited by Akul Nishant Akhoury
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