New Delhi: The RBI has announced on Friday that it has imposed a penalty of Rs 3.1 lakh on Hero FinCorp Limited for not complying with certain provisions of the fair practices code.The Reserve Bank clarified that the penalty is due to regulatory compliance issues and it does not affect any validity of transaction or agreement Hero FinCorp Limited has with its customers.
The RBI conducted a statutory inspection of Hero FinCorp Limited based on its financial position as of March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the directions, it said. (Also Read: HDFC Bank Customers Alert! UPI, Net Banking, And Mobile Banking Services Will Be Down On THIS Date & Time- Details Inside)
“After considering the company’s reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI found, inter alia, that the … Charge against the company was sustained, warranting imposition of monetary penalty,” the central bank said. (Also Read: Google Infuses $350 Million In Walmart-Owned Flipkart)
Hero FinCorp did not convey the terms and conditions of loans in writing to borrowers in the vernacular language understood by them, it said. The RBI also said imposition of the monetary penalty is without prejudice to any other action that may be initiated by it against the company. (With PTI Inputs)