HDFC Bank to refund GPS device commission to auto loan customers

The irregularities successful the car indebtedness portfolio pertains to the charges that immoderate executives of the slope had forced borrowers to bargain GPS devices bundled with car loans.

The country’s largest backstage assemblage lender, HDFC Bank, volition refund the GPS instrumentality committee to customers who had availed of specified instrumentality arsenic portion of car loans betwixt FY14 and FY20. In a nationalist announcement that appeared connected the paper connected Thursday, the lender said the refund volition beryllium credited to the customer’s slope relationship arsenic registered with lender.

FE has learnt that HDFC Bank is refunding the magnitude to customers according to directions received from the Reserve Bank of India (RBI). The full refund magnitude arsenic GPS committee could beryllium to the tune of Rs 40 crore, sources said.

“The announcement is hereby fixed that HDFC Bank Limited (Bank) volition beryllium refunding the GPS instrumentality committee to car indebtedness customers who availed of specified instrumentality arsenic a portion of the car indebtedness backing during the play FY 2013-14 to FY 2019-20,” the lender said successful the nationalist notice.

“The refund volition beryllium credited to the customer’s repayment slope relationship arsenic registered with the bank. In lawsuit of immoderate queries oregon successful lawsuit specified slope relationship is closed, specified customers are requested to interaction the slope from their registered email ID oregon telephone connected the beneath fixed toll escaped fig with the details of the car indebtedness relationship fig wrong the adjacent 30 days,” the announcement further read.

Last Month, the RBI had slapped a punishment of Rs 10 crore connected HDFC Bank owed to deficiencies successful regulatory compliance successful the GPS instrumentality committee case. The regulator, however, said the punishment was based connected deficiencies successful regulatory compliance and was not intended to pronounce upon the validity of immoderate transaction oregon statement entered into by the slope with its customers. The regulator has imposed the punishment aft considering the bank’s reply to the show-cause notice.

The irregularities successful the car indebtedness portfolio pertains to the charges that immoderate executives of the slope had forced borrowers to bargain GPS devices bundled with car loans. The misconduct by slope officials was acknowledged by erstwhile MD and CEO Aditya Puri successful the bank’s AGM erstwhile helium had said an interior probe was conducted against a fewer erring employees and due enactment was taken.

“We had received immoderate whistle-blowing complaints, interior enquiries carried retired successful the substance connected the complaints received has not brought retired immoderate conflict-of-interest issue, nor does it person immoderate bearing connected our indebtedness portfolio,” Puri said astatine the company’s yearly wide gathering connected July 18, 2020.

Email queries sent to HDFC Bank did not elicit immoderate effect till the clip of filing this copy.