Banking News

HDFC Bank arm barred from onboarding clients in Dubai

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The Dubai Financial Services Authority (DFSA) has prohibited HDFC Bank's Dubai International Financial Centre (DIFC) branch from onboarding new clients due to irregularities in its client servicing and onboarding procedures. According to a stock exchange filing by HDFC Bank, the DFSA observed that the Dubai branch was offering services to clients who were not formally onboarded by the branch.

However, the restriction does not affect existing clients or those who were previously offered services without being officially onboarded. The directive remains in force until further notice from DFSA. HDFC Bank, India's largest private lender, assured that there is no material impact on its financials due to the prohibition.

The bank said it has already taken steps to comply with the regulatory order and is actively engaging with DFSA to address all concerns. The incident marks a significant compliance issue for HDFC Bank's overseas operations, especially in a tightly regulated jurisdiction like DIFC, where transparency and adherence to onboarding protocols are crucial for financial entities operating under international laws.

RBI simplifies deposit claims for nominees and heirs

In a significant move to ease access to funds after a bank customer's death, the Reserve Bank of India (RBI) has announced new norms allowing simplified claim settlement for deposits up to Rs. 15 lakh for commercial banks and Rs. 5 lakh for cooperative banks.

The framework applies to deposits, lockers, and articles in safe custody, replacing earlier circulars and standardising the claim process across institutions. For deposits without a nominee or will, and where no court case is pending, claims can be settled with basic documents like death certificate, ID proof, indemnity bond, and a legal heir declaration or certificate.