UAE Regulator Bars HDFC Bank DIFC Branch from New Clients

News; Dated: 27.09.2025

1. UAE Regulator Restricts HDFC Bank’s DIFC Branch

The Dubai Financial Services Authority (DFSA) has issued an order barring HDFC Bank’s Dubai International Financial Centre (DIFC) branch from onboarding new clients. The directive prevents the branch from offering key financial services such as advising on financial products, arranging investments, extending credit, providing custody services, and making financial promotions to new customers.

2. Impact on Existing Customers

The DFSA clarified that the restrictions apply only to new client onboarding and do not affect the bank’s existing customers. Clients who had already been offered financial services but were yet to be formally onboarded will also remain unaffected. This ensures continuity for the branch’s current base of clients while regulatory scrutiny continues.

3. Duration of the Restrictions

According to the regulator, the order will remain in force until it is amended or formally revoked in writing. This means that HDFC Bank’s DIFC branch will not be able to expand its customer base in Dubai until it meets compliance expectations set by the DFSA.

4. HDFC Bank’s Clarification on Business Impact

In response to the order, HDFC Bank stated that the DIFC branch operations are not material to its overall business or financial position. The bank disclosed that, as of September 23, 2025, the branch served 1,489 customers, including joint account holders. This reassures stakeholders that while the restrictions are significant for the branch, they do not pose a substantial risk to HDFC Bank’s global operations.

Click Here To Read The Full Update