UAE regulator bars India’s HDFC Bank from taking on new customers at its Dubai branch

HDFC Bank said that its Dubai International Financial Centre (DIFC) branch has been ordered to stop onboarding or soliciting new clients by a United Arab Emirates regulator.

Dubai Financial Services Authority’s order has been in effect from September 26 and will remain “until otherwise amended or revoked,” the bank said late on Friday.

“The bank has already initiated necessary steps to comply with the directives in the above-referred notice and is committed to work with the DFSA to promptly remediate and address the DFSA concerns at the earliest,” HDFC said in a statement.

As on September 23, the its DIFC Branch has 1,489 customers, including joint holders, it said.

The bank said the order does not have any “material impact” with respect to the overall operations or financial position of the bank.

HDFC Bank said the prohibition does not apply to the continued servicing of existing customers of the DIFC Branch.