RBI Imposes ₹31.80 Lakh Penalty On HSBC For Violating Rules On Inoperative Accounts, Unclaimed Deposits
The Reserve Bank of India (RBI) has recently imposed a monetary penalty of Rs 31.80 lakh on The Hongkong and Shanghai Banking Corporation Limited (HSBC) for failing to comply with its directions on inoperative accounts and unclaimed deposits, the central bank said in a press release issued on March 20, 2026.
The action stems from an order dated March 18, 2026, passed in exercise of powers under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.
The action follows a Statutory Inspection for Supervisory Evaluation conducted by RBI with reference to the bank's financial position as on March 31, 2025. During the inspection, the central bank found violations of its directions on 'Inoperative Accounts / Unclaimed Deposits in Banks – Revised Instructions', following which a show-cause notice was issued to the bank asking why penalty should not be imposed.
After considering the bank's reply, additional submissions and oral submissions made during the personal hearing, the RBI concluded that the charges were sustained and warranted imposition of a monetary penalty.
According to RBI, the bank failed to host a searchable database of unclaimed deposits on its website and also failed to generate and assign Unclaimed Deposits Reference Number (UDRN) to certain unclaimed deposits transferred to the Depositor Education and Awareness (DEA) Fund.
Clarifying the scope of the action, the RBI said,
“The action is based on deficiencies in statutory and 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 added that the penalty is without prejudice to any other action that may be initiated against the bank.