RBI imposes monetary penalty on Hero Fincorp Limited
The Reserve Bank of India (RBI) has, by an order dated September 22, 2026, imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only) on Hero Fincorp Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Fair Practices Code for Lenders – Charging of Interest’. This penalty has been imposed in exercise of powers conferred on RBI under section…
On September 22, 2026, the Reserve Bank of India (RBI) imposed a penalty of ₹10 lakh on Hero Fincorp Limited for not adhering to certain directives related to the fair practices code for lenders, particularly concerning interest charges. This decision was made following an inspection of the company's financial status as of March 31, 2025, which revealed non-compliance with RBI guidelines.
The RBI first sent a notice to Hero Fincorp Limited, requesting an explanation as to why the penalty should not be imposed for its failure to adhere to the specified directions. After reviewing the company's response, additional submissions, and oral arguments during a personal hearing, the RBI concluded that the company had indeed collected excess interest on certain loan accounts.
The penalty is a direct result of deficiencies in regulatory compliance and does not comment on the validity of any agreements the company had with its customers. The RBI emphasized that this penalty is separate from any other potential actions it may take 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.
This story
This is one outlet's version. Read the fullest account.
