The country’s largest private sector lender, HDFC Bank, will reimburse the GPS device’s commission to customers who had used the device on auto loans between FY14 and FY20. In a public notice in the newspaper on Thursday, the lender said the repayment would be credited to the customer’s bank account registered with the lender.
FE has learned that HDFC Bank is refunding the amount to customers as instructed by the Reserve Bank of India (RBI). The total reimbursement amount as GPS commission could be in the order of Rs 40 crore, according to sources.
“Notice is hereby given that HDFC Bank Limited (Bank) will reimburse the GPS device commission to car loan customers who have used this device in connection with the financing of the car loan during the period FY 2013- 14 to FY 2019-20, ”the lender said in the public notice.
“The refund will be credited to the customer’s refund bank account as registered with the bank. If there are any questions or if this bank account is closed, these customers are requested to contact the bank from their registered email id or call the toll free number below with loan account number details. automobile within the next 30 days. “, we read further in the opinion.
Last month, the RBI fined the HDFC Bank Rs 10 crore over regulatory compliance breaches in the GPS Device Commission case. The regulator, however, said the sanction was based on gaps in regulatory compliance and was not intended to rule on the validity of a transaction or agreement the bank has made with its customers. The regulator imposed the sanction after reviewing the bank’s response to the show cause notice.
The irregularities in the auto loan portfolio relate to accusations that some bank executives coerced borrowers into purchasing GPS devices associated with auto loans. The misconduct of bank officials was acknowledged by former chief executive and CEO Aditya Puri at the bank’s AGM when he said that an internal investigation had been carried out against a few offending employees and that action was taken. appropriate had been taken.
“We had received whistleblower complaints, internal investigations into the complaints received did not reveal any conflict of interest issues, and this has no impact on our loan portfolio,” Puri said at the time. of the company press conference. annual general meeting on July 18, 2020.
Requests by e-mail sent to HDFC Bank did not elicit any response until the time of filing this copy.