HDFC Bank barred from onboarding new clients in Dubai
**HDFC Bank Barred from Onboarding New Clients in Dubai**
*By Akash Pandey | Sep 27, 2025, 04:34 PM*
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**What’s the Story?**
The Dubai Financial Services Authority (DFSA) has imposed restrictions on HDFC Bank’s Dubai International Financial Centre (DIFC) branch, barring it from onboarding new clients or providing financial services. This regulatory action stems from concerns related to the bank’s client onboarding practices.
Despite these restrictions, HDFC Bank has clarified that the DIFC branch’s operations are not material to its overall business. The bank is actively taking steps to comply with the DFSA’s directives.
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**Regulatory Action: DFSA’s Directive**
The DFSA’s directive prohibits HDFC Bank’s DIFC branch from offering financial services to new clients. This includes:
– Advising on financial products
– Arranging investment deals
– Extending credit
– Providing custody services
Additionally, the branch is barred from making financial promotions aimed at potential new clients. It is important to note that these restrictions do not affect existing customers or those who were previously offered financial services but have not yet been onboarded.
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**Compliance Efforts & Business Impact**
HDFC Bank has emphasized that the DIFC branch’s operations are not material to its overall financial position. As of September 23, 2025, the branch had a total of 1,489 customers, including joint account holders.
The bank has already initiated the necessary steps to comply with the DFSA’s notice and remains committed to cooperating fully with the regulator’s ongoing investigation.
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**Investigation Details: Onboarding Concerns**
The DFSA’s concerns focus on whether the DIFC branch properly onboarded clients according to the specific requirements of the DIFC jurisdiction, which enforces distinct financial rules and a stricter framework for “professional clients.”
This investigation follows a two-year-old controversy related to the alleged mis-selling of high-risk Credit Suisse additional tier-1 (AT1) bonds, which has placed the bank’s compliance practices under scrutiny.
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HDFC Bank continues to work closely with the DFSA to address these issues and ensure adherence to regulatory standards within the Dubai financial market.
https://www.newsbytesapp.com/news/business/uae-regulator-bars-hdfc-from-new-client-onboarding-in-dubai/story
