India's largest private bank HDFC is famous for auto loans. But you would recall that last year HDFC Bank was forcing customers with car loans to buy vehicle tracking devices from non-financial businesses. The price of which was around Rs 18,000 to Rs 19,500, and the device was being sold by Mumbai-based firm TrackPoint GPS. At present, the bank has announced today, that the money will be returned to those auto loan customers. Those who bought GPS devices between FY 2014 to FY 2020.
10 crore penalty imposed on the bank: The amount will be credited back to the customers' accounts by the bank. The private sector lender was fined Rs 10 crore by the Reserve Bank of India (RBI) last month for selling vehicle-tracking equipment to its auto loan customers. The Reserve Bank of India (RBI) had imposed a penalty of Rs 10 crore on the bank for irregularities in the auto loan division. The complaint said that the bank executives had put pressure on auto loan customers to buy GPS devices. If they do not buy this device, their loan will not be sanctioned.
Follow these steps if you do not have an account with the bank: Refund will be credited to the account registered with the customer's bank. If the account of those people has been closed, then the customer can contact the bank from his registered email id. RBI said that "the decision has been taken after examining the documents relating to the vehicle loan". HDFC Bank MD and CEO Aditya Puri told shareholders at the annual general meeting that "after receiving the whistleblower's complaint, the bank conducted an internal inquiry into the car loan business and action has been taken against the found employees."