RBI fines HSBC ₹31.8 lakh for ignoring unclaimed deposits rules
The Reserve Bank of India just fined HSBC ₹31.8 lakh for not following key rules about unclaimed deposits and inactive accounts.
After checking HSBC's finances up to March 2025, RBI found the bank hadn't met some important requirements.
Bank skipped some important requirements
HSBC didn't set up a searchable list of unclaimed deposits on its website, which is required under RBI directions for banks.
It also skipped assigning special reference numbers for certain deposits moved to the Depositor Education and Awareness (DEA) Fund maintained by the RBI, another must-do under RBI rules.
RBI is getting stricter about banks following rules
This penalty is all about making sure banks actually follow through when it comes to people's forgotten money.
While customers aren't directly affected by this fine, it signals that RBI is getting stricter, especially since the RBI's inspection covered the bank's position as of March 31, 2025.
The push now is for banks to help people reclaim their old money through outreach and easier online tools like the Udgam portal.