On Friday, HDFC Bank Limited declared that the Dubai Financial Services Authority (DFSA) had formally instructed its Dubai International Financial Centre (DIFC) office to restrict the onboarding of new customers. The DIFC branch is prohibited from approaching or doing business with new clients who have not finished the onboarding procedure by that date, according to the Decision Notice of September 25, 2025. The limitations apply to a variety of financial services operations, such as custody-related services, investment transaction structuring, credit arrangement or advice, and financial product advice. Additionally, the branch is not allowed to onboard new customers or conduct financial promotions. Clients who have previously received financial services but were not properly onboarded may still be served, and current clients may continue to receive services. Until the DFSA publishes a written revision or repeal, the directive, which went into force on September 26, 2025, will stay in effect. Concerns about improperly onboarded financial services for clients and problems with the branch’s onboarding procedures were mentioned by the DFSA.
The activities of the DIFC branch are not material to the bank’s overall financial condition, and HDFC Bank has made it clear that no major financial impact is anticipated. 1,489 customers, including joint holders, had been onboarded to the branch as of September 23, 2025. The bank added that it is working with the regulator to immediately address issues and has already started putting the DFSA’s directions into practice.
