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Ria Jain made post

Why has RBI asked HDFC Bank to pay back the Altico Money to Mashreq Bank?

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Anu Biswas answered.
3 weeks ago

RBI has directed HDFC Bank to repay Rs.210 crore to Mashreq Bank, which it had debited from Altico Capital’s account in Sep-19 against loans given to Altico. HDFC Bank had debited the sum through an ECB from Mashreq Bank. Altico had actually raised the money from Mashreq Bank and had parked the funds with HDFC Bank.

HDFC Bank debited the money after Altico was downgraded to speculative grade. As a result, Altico and Mashreq Bank accused HDFC Bank of violating regulatory provisions and approached the RBI.