RBI imposes monetary penalty on Hinduja Leyland Finance Limited
The Reserve Bank of India (RBI) has, by an order dated September 02, 2026, imposed a monetary penalty of ₹6.20 lakh (Rupees Six Lakh Twenty Thousand only) on Hinduja Leyland Finance Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Pricing of Microfinance Loans’ and ‘Securitisation of Standard Assets’. This penalty has been imposed in exercise of…
The Reserve Bank of India (RBI) imposed a monetary penalty of ₹6.20 lakh on Hinduja Leyland Finance Limited for non-compliance with specific RBI directives. This penalty was enforced under Section 58G(1)(b) and Section 58B(5)(aa) of the Reserve Bank of India Act, 1934. An inspection of the company's financial position as of March 31, 2025, revealed non-compliance with RBI directives.
A notice was sent to the company to explain its failure to comply. After reviewing the company's responses and additional submissions, RBI concluded that the company had failed to establish a Board-approved policy for pricing microfinance loans and engaged in activities resembling synthetic securitization. These deficiencies in regulatory compliance warranted the imposition of the penalty.
This action does not comment on the validity of any transactions or agreements between the company and its customers. The penalty does not preclude RBI from taking further actions against the company.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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