RBI imposes monetary penalty on Hewlett Packard Financial Services (India) Private Limited

Case Brief

RBI imposed a monetary penalty of ₹10,40,000 on Hewlett Packard Financial Services (India) Private Limited by order dated September 3, 2024. The penalty followed a statutory inspection and a show-cause process, after which RBI concluded that the company had breached multiple regulatory requirements: it did not put in place a system for periodic review of risk categorization of accounts, did not properly disclose and communicate interest-rate methodology and risk-based pricing in loan documents, and did not form an IT Strategy Committee and an IT Steering Committee as required. The penalty was imposed under the RBI Act, 1934, and the release notes that it is without prejudice to any other action RBI may initiate.