Case Brief
RBI imposed a monetary penalty of ₹5 lakh on M/s Hinduja Leyland Finance Ltd. under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934. The penalty followed an inspection of the company's books and accounts as on March 31, 2015, which found that interest was charged and communicated to the borrower in a non-transparent manner, violating RBI's Fair Practices Code guidelines issued under Section 45L. After a show-cause notice, an unsatisfactory response, and a personal hearing, RBI concluded that the violations were substantiated and warranted penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty