RBI said in the statement that it was revealed in the inspection that the company could not transfer the matured deposits of some depositors to their designated bank accounts during 2019-20.
The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 lakh on Housing Development Finance Corporation Limited (HDFC) for non-compliance with certain provisions of the National Housing Bank (NHB). RBI informed that NHB had conducted statutory inspection of the company based on the financial position of the company as on March 31, 2022.
What is the allegation: RBI said in the statement that it was revealed in the inspection that the company could not transfer the matured deposits of some depositors to their designated bank accounts during 2019-20. Thereafter, a show cause notice was issued to the company as to why penalty should not be imposed on it.
After considering the reply of the company, the Reserve Bank has come to the conclusion that the allegation of non-compliance of the provisions is sufficient and warrants imposition of penalty.
What happened to the stock: HDFC stock also gained momentum on the last trading day of the week and it rose by 1.14% to the level of Rs 2561. Explain that the process of merger of HDFC and HDFC Bank Limited is now in the final stages. Last Friday, the National Company Law Tribunal (NCLT) also approved the merger.
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