HDFC Bank Ltd announced on Friday that its Dubai International Financial Centre (DIFC) branch received a directive from the Dubai Financial Services Authority (DFSA), placing restrictions on onboarding new clients. The Decision Notice, dated September 25, 2025, prohibits the branch from engaging in or soliciting business from clients who had not completed onboarding by that date. This includes services such as advising on financial products, arranging investment deals, advising or arranging credit, and custody services.
Additionally, the branch cannot carry out financial promotions or onboard any new clients. However, it may continue to serve existing clients and those previously offered services but not yet formally onboarded. The directive took effect on September 26, 2025, and will remain until the DFSA modifies or revokes it in writing.
The DFSA cited concerns over services offered to improperly onboarded clients and flaws in the onboarding process. HDFC Bank clarified that the DIFC branch’s contribution to overall operations is not significant, and no material financial impact is expected. The bank is cooperating with the DFSA and has initiated corrective actions.
