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News Topical, Digital Desk : HDFC Bank has suffered a major setback in Dubai. The bank recently announced that its Dubai International Financial Centre (DIFC) branch has received a notice from the Dubai Financial Services Authority (DFSA). Under this notice, certain financial services will be suspended effective September 26th for new clients whose onboarding process has not been completed by September 25, 2025.
- Advising on financial products.
- Arranging investment deals.
- Arranging credit.
- Advising on credit and arranging custody.
Additionally, the branch has been prohibited from conducting any financial promotions, onboarding, or communication with new clients.
Existing clients will continue to receive services. Despite the DFSA restrictions, existing clients will continue to receive services as before. Furthermore, clients with whom communication had begun before September 25th but whose onboarding was incomplete may also receive services. As of September 23, 2025, HDFC's DIFC branch had 1,489 registered customers, including joint account holders. Why was the restriction imposed? According to the notice, the DIFC branch was also offering services to some clients whose onboarding had not been completed. During this period, several serious issues emerged, including deficiencies in the onboarding process, compliance lapses, and non-compliance with regulatory standards. HDFC Bank stated that business generated through its DIFC branch represents a very small portion of its overall financial performance, and these restrictions will not significantly impact the bank's overall operational capacity. The bank stated, "We have taken the necessary steps to comply with the DFSA's directives." This action stems from a two-year-old controversy surrounding the mis-selling of Credit Suisse's AT bonds. The bank is accused of misusing NRI funds and selling these high-risk bonds to investors through a UAE network. Advisory services were provided from the DIFC, while account booking was done through the Bahrain branch. Many NRI investors suffered significant losses when Credit Suisse collapsed in 2023.
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