HDFC Bank’s Dubai branch barred by DFSA from onboarding new clients

Private sector lender HDFC Bank Limited on Friday (September 26) said that its Dubai International Financial Centre (DIFC) branch has received a Decision Notice from the Dubai Financial Services Authority (DFSA).

As per the notice dated September 25, 2025, the DIFC Branch has been prohibited from soliciting or conducting any business with new clients who had not completed the onboarding process as of September 25, 2025.

The restriction covers financial services activities, including Advising on Financial Products, Arranging Deals in Investments, Arranging Credit, Advising on Credit, and Arranging Custody.

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Additionally, the branch cannot solicit, onboard, or engage in financial promotions with new clients. However, the prohibition does not extend to the continued servicing of existing customers or to onboarding clients who had earlier been offered or provided financial services but were not formally onboarded at that time.

The directive, effective September 26, 2025, will remain in force until amended or revoked in writing by the DFSA. The communication was received by the bank on September 26, 2025, via email.

The DFSA notice cited concerns regarding carrying on financial services for customers not properly onboarded, issues in onboarding processes, and related matters at the DIFC Branch.

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HDFC Bank clarified that the DIFC Branch business is not material to its overall operations or financial position, and hence, no significant financial implications are expected. As of September 23, 2025, the branch had 1,489 onboarded customers, including joint holders.

The bank stated that it has already initiated necessary steps to comply with the directives and is committed to working with the DFSA in its ongoing investigation and to remediate and address the regulator’s concerns at the earliest.

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