By Gunjan Rajput

Copyright republicworld

On September 25, 2025, the Dubai Financial Services Authority (DFSA) issued a Decision Notice restricting HDFC Bank’s Dubai International Financial Centre (DIFC) branch from onboarding new clients.The directive prohibits the branch from soliciting or conducting business with new clients who had not completed the onboarding process by that date. The restrictions encompass a range of financial services activities, including advising on financial products, arranging investment deals, arranging or advising on credit, and custody-related services.Impact on Existing ClientsThe DFSA’s order does not affect existing clients of the DIFC branch. Clients who had previously received financial services but were not formally onboarded may still be accommodated. The branch is prohibited from engaging in financial promotions or onboarding new clients until the DFSA issues an amendment or revocation in writing.HDFC Bank’s ResponseIn a statement, HDFC Bank clarified that the DIFC branch’s operations are not material to the bank’s overall financial position, and no significant financial impact is expected. As of September 23, 2025, the branch had 1,489 onboarded customers, including joint holders. The bank has initiated necessary steps to comply with the DFSA’s directives and is committed to cooperating with the regulator to address the concerns promptly.‘As on September 23, 2025, the DIFC Branch has 1,489 customers onboarded, including joint holders. As mentioned above, the prohibition does not apply to (a) the continued servicing of existing customers of the DIFC Branch and (b) the onboarding of customers who may have been offered or provided financial services and who had not, during such offer or provision, been onboarded as clients of the DIFC Branch and their ongoing servicing,’ said the company in the exchnage filing. Regulatory ConcernsThe DFSA cited concerns related to financial services provided to clients not properly onboarded and issues in the branch’s onboarding processes. The restrictions are part of the DFSA’s ongoing efforts to ensure compliance with regulatory standards and to protect investors within the DIFC.Read More – ‘This Is False’: Musk Reacts To Mention In New Jeffrey Epstein Files