The Dubai International Financial Center (DIFC) branch of HDFC Bank of Private Sector has been banned. These include adding new clients. This instruction has been given by Dubai Financial Services Authority (DFSA). The notice issued on 25 September 2025 prevents the DIFC branch of HDFC Bank from contacting or doing business with new clients that have not yet completed the onboarding process. HDFC Bank has informed Indian stock markets about this ban.
The exchange filing states that these restrictions are applicable to many types of financial services activities. These include advice on financial products, arrange for investment deals, arranging credit or advising it, custody-related services. In addition, the DIFC branch has also been barred from adding new clients or including them in any financial promotion.
Existing customers will not be affected
However, services can be continued to be given to existing customers. Customers who had earlier received financial services but were not formally onboard at that time, they can still be unomodded. This instruction of DFSA will be effective from September 26, 2025 and will be applicable until DFSA changes it in written form or does not remove it.
The DFSA has cited concerns related to problems in financial services and onboarding processes of the branch offered properly onboard. As of September 23, 2025, there were 1489 onboard customers, including joint holders of accounts in the branch.
HDFC Bank started taking steps
HDFC Bank has clarified that the operation of the DIFC branch is not important for the bank’s overall financial status and is not expected to have any significant financial impact. The bank further stated that it has started implementing measures to follow DFSA’s instructions and is collaborating with the regulator to resolve the concerns soon.