HDFC Bank Loan Refund | HDFC Bank Announces Controversial GPS Device Commission Charged To Auto Loan Borrowers Or Customers | HDFC Bank will refund the commission to customers, there is a case of GPS devices in vehicles

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  • HDFC Bank Loan Refund | HDFC Bank Announces Controversial GPS Device Commission Charged To Auto Loan Borrowers Or Customers

Mumbai18 minutes ago

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  • Refund will be credited to the customer’s bank account registered with the bank
  • Customers have been asked to get in touch in the next 30 days

HDFC Bank, the largest private sector bank, has announced to refund the GPS commission to the auto loan borrowers. He had taken this commission 6 years ago in lieu of installing GPS devices in vehicles. At that time the CEO of the bank, Aditya Puri had accepted the matter.

The matter was going on for many years

In fact, this case was going on in the bank for many years. Last year, its retired CEO Aditya Puri admitted that irregularities were found regarding GPS devices in vehicles. After this many allegations came to the fore. Earlier this year, the Reserve Bank had also imposed a fine of Rs 10 crore on HDFC Bank in the same case. After the matter came to light, many of its officers had also resigned.

notices in newspapers

In a public notice published in newspapers, the bank has announced this refund. It added that HDFC Bank will refund GPS device commission to auto loan customers availing such devices as a part of auto loan funding during FY 2013-14 to FY 2019-20. It also states that the refund will be credited to the bank account of the customer registered with the bank. Customers have been asked to get in touch within the next 30 days.

There was a device of 18 thousand rupees

The bank was accused of giving this device of Rs 18,000 along with the loan to the auto loan borrowers. This device was installed in the vehicles without the consent of the customers. That is, customers were forced to buy GPS (Global Positioning System) devices from the bank at a cost of more than 18 thousand rupees per piece. Apart from violating the existing rules, it also violated this rule which bars the bank from selling any other product. This also raised the question of breach of privacy as any vehicle can be tracked by such a device.

some officers were discharged

Some people have been laid off in the bank after irregularities in the auto loan practice came to light. Some people were newly recruited. On May 29, the Reserve Bank of India imposed a fine of Rs 10 crore on HDFC Bank for selling a vehicle tracking device. The penalty was imposed after a show cause notice, oral submissions made during the personal hearing and clarifications given by the bank and scrutiny of documents.

In a statement, the Reserve Bank had said that the penalty has been imposed following an inspection conducted by the RBI on a whistleblower’s complaint regarding irregularities in the bank’s auto loan portfolio.

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