HDFC Bank, the country’s largest private sector bank, has faced several compliance issues in recent years.

The abrupt resignation of HDFC Bank's part-time chairman Atanu Chakraborty, who raised concerns over “certain happenings and practices”, has brought back governance concerns to the forefront.

Here are some notable compliance issues at the bank:

November 2025 – Reserve Bank of India (RBI) fined ⁠HDFC Bank Rs 91 lakh for compliance failures, including ⁠use of multiple benchmarks for the same loan category and issues around outsourcing of know-your-customer services.

The bank also did not comply with certain directions on interest rate on advances and outsourcing of financial services by banks.

RBI said the bank had allowed a subsidiary to carry out non-permitted business and outsourced KYC compliance checks to external agents.

September 2025 - Dubai's Financial Services Authority restricted a branch of HDFC Bank from onboarding new clients citing deficiencies in its procedures. The restriction covered activities such as advising on financial products, arranging deals in investments, arranging credit, advising on credit and arranging custody.

July 2025 – RBI imposed a fine of Rs 4.88 lakh on HDFC Bank for violating norms on foreign investment in India while granting a term loan to its client.

March 2025 – The RBI slapped a penalty of Rs 75 lakh on HDFC Bank for non-compliance with the 'Know Your Customer' (KYC) guidelines. Among other things, the lender had not categorised certain customers into low, medium or high risk categories based on its assessment and risk perception, which is mandatory as per the RBI directives.

September 2024 – A fine of Rs 1 crore was imposed ‌by the RBI for violations of deposit rate rules and falling below standards for debt ⁠collection and customer service.

December 2020 - The RBI directed HDFC Bank to halt issuing new credit cards after repeated IT outages, and flagged persistent weaknesses in its digital infrastructure. The restrictions were lifted in March 2022.