HDFC Bank Accused of Levying Processing Fees on Customers with Forged Documents

A whistleblower has allegedly written to the Reserve Bank of India (RBI) in July, accusing HDFC Bank of levying processing fees on customers who submitted forged or suspected documents to get loans. The private sector lender allegedly collected a fine it called "processing fee" instead of taking regulatory or legal action against the customers. HDFC Bank, however, claims that the processing fee is charged to cover additional due diligence and verification costs, and that it files police complaints in cases where processing cost was paid by individuals.

Key Takeaways:

• A whistleblower has written to the RBI alleging that HDFC Bank levied processing fees on customers who submitted forged or suspected documents to get loans.
• The whistleblower alleged that the penalty was in return for not taking any regulatory or legal action against the customers.
• HDFC Bank claims that the processing fee is charged to cover additional due diligence and verification costs.
• The bank allegedly files police complaints in cases where processing cost was paid by individuals.
• Shares of HDFC Bank ended marginally lower to Rs 1582.55 at the BSE.
• HDFC Bank spokesperson stated that in number of cases, applicants do not respond to attempts to clarify discrepant or suspicious applications.
• The bank "without exception" takes steps like declining the loan application and updating the internal data base to prevent any future application from the customer.

Statistics:

• Number of cases where applicants do not respond to attempts to clarify discrepant or suspicious applications: Not specified.
• Number of cases where HDFC Bank files police complaints: Not specified.
• Shares of HDFC Bank at the end of the day: Rs 1582.55.
• Date of the alleged whistleblower complaint: July.

Sources:

• "HDFC Bank levies processing fee on customers who submit fake documents," Contify.com
• Carbon copy of the RBI Complaint ( Date: July , Reference number: Normall)