The Reserve Bank of India on Friday said it has imposed a penalty of Rs 31.80 lakh on American Express Banking Corp for non-compliance with certain directions on 'Credit Card and Debit Card - Issuance and Conduct'.
The central bank has also imposed a penalty of Rs 4.2 lakh on HDB Financial Services for non-compliance with certain provisions of the eserve Bank of India (Know Your Customer (KYC) Directions, 2016'.
In a statement, the RBI said it conducted a statutory inspection for supervisory evaluation (ISE 2024) of American Express Banking Corp with reference to its financial position as on March 31, 2024.
Based on the supervisory findings of non-compliance with RBI directions and related correspondence, a show cause notice was issued.
After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the charge warranted imposition of monetary penalty.
The American Express Banking Corp did not make any efforts to reverse credit balances of certain credit cardholders, arising out of refund / failed / reversed transactions, to their bank accounts. -- PTI
