**HDFC Bank Barred from Onboarding New Clients in Dubai**
*By Akash Pandey | Sep 27, 2025, 04:34 PM*
The Dubai Financial Services Authority (DFSA) has taken regulatory action against HDFC Bank’s Dubai International Financial Centre (DIFC) branch, prohibiting it from onboarding new clients or providing financial services. This move stems from concerns related to the bank’s onboarding practices at its DIFC branch.
**Regulatory Directive Details**
Under the DFSA’s directive, HDFC Bank’s DIFC branch is barred from offering financial services to new clients. This includes advising on financial products, arranging investment transactions, extending credit facilities, and providing custody services. Additionally, the branch is not permitted to make financial promotions to prospective clients.
Importantly, these restrictions do not affect existing customers or those previously offered financial services but not yet fully onboarded.
**Impact on HDFC Bank’s Operations**
HDFC Bank has clarified that the operations of its DIFC branch are not material to the bank’s overall business or financial standing. As of September 23, the branch served 1,489 customers, including joint account holders.
The bank has already initiated steps to comply with the DFSA’s directives and reiterates its commitment to cooperating fully with the ongoing investigation.
**Background: Investigation and Concerns**
The DFSA’s concerns focus on the branch’s onboarding practices, particularly relating to financial services extended to clients who may not have been fully onboarded under DIFC’s stringent regulatory framework. The jurisdiction imposes stricter rules, especially regarding the classification and treatment of “professional clients.”
This regulatory scrutiny follows a controversy from two years ago involving allegations of mis-selling high-risk Credit Suisse additional tier-1 (AT1) bonds. The DFSA continues to investigate whether the onboarding procedures at the DIFC branch were compliant with local financial regulations.
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HDFC Bank’s compliance with DFSA directives and the outcome of the investigation will be closely watched by industry stakeholders and clients operating within the DIFC.
https://www.newsbytesapp.com/news/business/uae-regulator-bars-hdfc-from-new-client-onboarding-in-dubai/story