HDFC Bank barred by Dubai Financial Services Authority from onboarding new clients or undertaking fresh biz

The HDFC Bank has been barred by the Dubai Financial Services Authority (DFSA) from onboarding new clients or undertaking fresh business through its Dubai International Financial Centre (DIFC) Branch.

HDFC Bank, in a letter to the stock exchanges, said that its DIFC Branch received decision notice from DFSA on September 26.

The DFSA has prohibited the bank's DIFC Branch from soliciting or conducting business with new clients for financial services.

The ban covers advising on financial products, arranging deals in investments, arranging credit, and advising on credit along with arranging custody.

DFSA also prohibited DIFC Branch from soliciting, onboarding, or engaging in financial promotions with new clients.

Read more: British govt guarantees £1.5 billion loan to Jaguar Land Rover following cyberattack

Prohibition does not apply to the continued servicing of existing customers and onboarding clients who may have been previously offered services.

DFSA restrictions will remain until amended or revoked in writing, the bank said.

HDFC Bank said it has initiated steps to comply with the directives, and will work with the DFSA in the ongoing probe to resolve the concerns at the earliest.

"The Bank has already initiated necessary steps to comply with the directives in the above-referred notice and is committed to work with the DFSA in its ongoing investigation and to promptly remediate and address the DFSA concerns at the earliest," HDFC Bank's disclosure to the exchanges read.

The bank further stated that the DIFC Branch business is not material to overall operations or its financial position, and would have no significant impact.

"The business undertaken at the DIFC Branch is not material to the Bank’s operations or its financial position and accordingly no material impact/ implications are expected with respect to the overall operations or financial position of the Bank," the statement said.

As of September 23, 2025, DIFC Branch had 1,489 customers onboarded, including joint holders.

The bank said that the financial regulator imposed the prohibitions regarding the DIFC Branch "carrying on financial services by arranging/ advising on financial products/ credit for customers who were not onboarded by the DIFC Branch, issues with onboarding of customers at the DIFC Branch, and other matters.

Read more: RBI orders BNPL player Simpl to suspend payment operationsRead about our editorial guidelines and ethics policy