Case Brief
The Reserve Bank of India imposed a monetary penalty on Hero FinCorp Limited by order dated May 22, 2024. The penalty was for non-compliance with certain provisions of the RBI’s Non-Banking Financial Company Directions, 2016, specifically those relating to the Fair Practices Code. RBI found that the company did not convey the terms and conditions of loans in writing to borrowers in the vernacular language understood by them, following a statutory inspection and supervisory proceedings under the RBI Act, 1934.
Action Snapshot
- Primary Impact
- Fine: Rs 3.10 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty