Hdfc Bank Denies Allegations of Failure to Report Counterfeiting, Clarifies Loan “Processing Fee”

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India’s largest private lender, HDFC Bank Limited, released a clarification on Friday regarding a whistleblower complaint with the Reserve Bank of India (RBI) that the lender levied a fee to deter clients who submitted false documents to obtain loans instead of reporting them to law enforcement.

“The bank categorically states that once such requests are identified as discordant / suspicious, the bank tries to give these people the opportunity to come and clarify. However, in a number of cases, applicants do not respond, ”the bank said in a statement.

HDFC Bank has also listed the steps it takes in such cases. He said that these loan applications are denied, the internal database is kept up to date, to prevent any future customer inquiries, and the industry database is kept up to date, which helps prevent these loan applications. borrowers from engaging in such practices with other banks, NBFCs and financial institutions.
The development comes amid reports from September 30 that referenced a complaint filed with RBI in July that said a client applied for a loan from HDFC Bank using forged documents and the lender demanded. a fine and called it a “processing fee“. . ‘

HDFC Bank clarified that it does not waive customer handling fees that arise in such discordant / suspicious cases. Processing fees are charged to cover the cost of the bank’s efforts for additional due diligence and verification and not for closing cases, he explained.

“The collection or non-collection of the processing fee does not affect reporting to the internal and Hunter database (industry database) or attempts to report to law enforcement. In fact, the Bank files complaints against the police in a number of cases, where the processing fees have been paid by individuals, ”said HDFC Bank.

(Edited by : Kanishka Sarkar)


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