MUMBAI: India’s largest private lender, HDFC Bank, said Thursday that it will reimburse commission to auto loan customers who “used” the complete GPS device between fiscal 2014-20.
On July 20, 2020, Mint reported that HDFC bank car loan customers were forced to purchase a vehicle tracking device, possibly violating rules prohibiting banks from doing non-financial business. HDFC Bank Management Pushed Car Loan Clients to Buy GPS Devices at Cost, Mint reported ₹18,000-19,500 people from 2015 to December 2019. This device was sold by Trackpoint GPS of Mumbai.
“The refund will be credited to the client’s bank account registered with the bank,” the bank’s announcement says.
This came after the Reserve Bank of India (RBI) last month introduced ₹A fine of Rs 10 crore for a private sector lender for selling vehicle tracking devices to his car loan clients. RBI said the decision came after reviewing documents regarding allegations of inappropriate lending practices in vehicle finance transactions.
Aditya Puri, then Managing Director and Chief Executive Officer of HDFC Bank, told shareholders at the AGM that after receiving a whistleblower complaint, the bank conducted an internal investigation into the auto loan business and took disciplinary action against the employees it found. to be involved in “personal misconduct”.
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