There is significant news for HDFC Bank, one of India’s largest private sector banks, coming from Dubai. The Dubai Financial Services Authority ( DFSA ), the financial regulator in Dubai, has imposed a ban on the bank’s Dubai International Financial Centre (DIFC) branch from taking on new customers.
The Full Story
On Friday (September 27, 2025), HDFC Bank disclosed that the Dubai regulator issued a notice on September 25, 2025. As per the notice, the bank’s Dubai branch can no longer onboard any new clients. This restriction applies to all new customers whose account opening or service initiation process was not completed by September 25.
The regulator took this stringent action after discovering deficiencies in the bank’s client onboarding processes. The DFSA found that some clients were being provided services without adhering to the correct procedures.
Restricted Services
Under this ban, the DIFC branch cannot perform the following activities for new clients:
- Advising on financial products.
- Arranging investment deals.
- Advising on credit or loans.
- Providing custody-related services.
In simple terms, the bank is also restricted from any kind of promotion or marketing aimed at attracting new customers.
No Impact on Existing Clients
HDFC Bank clarified that this decision will not affect existing customers. Those who already hold accounts with the branch will continue to receive all services as before. The branch had approximately 1,489 customers as of September 23, 2025, who will face no inconvenience.
HDFC Bank stated that the restriction will not have a significant impact on the bank’s overall financial health, as the Dubai branch’s operations constitute a very small part of the bank’s total business. The bank confirmed it has started complying with the regulator’s directives and is working closely with the authorities to rectify the deficiencies as soon as possible. The ban will remain in effect until the DFSA issues a new order to lift it.