In a public notice, the lender said the refund would be credited to the customer accounts as registered with the bank. This could cost the bank nearly Rs 40 crore.
Last year it was revealed that some employees at the auto loans department allegedly forced customers to buy GPS devices bundled with car loans. It was found that some customers were not even aware of purchasing such a product till the loan documents were checked. These errant employees started forcefully bundling the GPS devices with car loans to meet sales targets and potentially track borrowers in the event of a default.
ET earlier reported that HDFC Bank had terminated at least six senior and mid-level executives after an internal probe revealed that they indulged in practices that were seen to be corrupt and violative of the code of conduct and governance standards of the bank,
The Reserve Bank of India had recently fined HDFC Bank 10 crore for irregularities found in its auto loan book. It had found the bank deficient in compliance.
The regulator had said after receiving a complaint from a whistleblower, it conducted an examination in the marketing and sale of third-party non-financial products to the bank’s auto loan customers. The RBI said it had found that the bank was in contravention of regulatory directions.
