Monetary Penalty on Hero Fincorp Limited
RBI press-release 2026-2027/1180 · 24 Sept 2026
Official title
RBI imposes monetary penalty on Hero Fincorp Limited
Summary
Check the official recordWhat changed
The Reserve Bank of India imposes a monetary penalty of ₹10 lakh on Hero Fincorp Limited. The company failed to comply with RBI directions on the Fair Practices Code for Lenders regarding the charging of interest. The RBI conducted a statutory inspection of the company financial position as of March 31, 2025. The inspection revealed that the company collected excess interest from certain loan accounts. The RBI issued a show cause notice to the company. The RBI considered the reply and submissions from the company before it imposed the penalty. This action does not affect the validity of any transaction or agreement between the company and its customers.
Key dates
- Date of order imposing penalty
- 22 Sept 2026
Who is affected
- Hero Fincorp Limited
Document text
September 24, 2026
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 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. 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 said directions.
After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company collected excess interest from certain loan accounts.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/1180
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in
Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 24 Sept 2026
- Document number
- 2026-2027/1180
- Issuing division
- Department of Communication
- Coverage area
- banking