Monetary Penalty on Hinduja Leyland Finance Limited
RBI press-release 2026-2027/1049 · 04 Sept 2026
Official title
RBI imposes monetary penalty on Hinduja Leyland Finance Limited
Summary
Check the official recordWhat changed
The Reserve Bank of India imposes a monetary penalty of ₹6.20 lakh on Hinduja Leyland Finance Limited. The company failed to comply with regulatory directions on the pricing of microfinance loans. The company also performed activities in the nature of synthetic securitisation. The Reserve Bank of India issued this penalty under the Reserve Bank of India Act, 1934. This action follows a statutory inspection of the company financial position as of March 31, 2025. The penalty does not affect the validity of any customer agreements.
Key dates
- Reference date for statutory inspection
- 31 Mar 2025
- Date of order imposing penalty
- 02 Sept 2026
Who is affected
- Hinduja Leyland Finance Limited
Document text
September 04, 2026
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 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 the 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 charges against the company were sustained, warranting imposition of monetary penalty:
- (i) The company failed to put in place a Board-approved policy on pricing of microfinance loans.
- (ii) The company undertook activities in the nature of ‘Synthetic Securitisation’.
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)
Press Release: 2026-2027/1049 Chief General Manager
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
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ई-मेल/email : helpdoc@rbi.org.in
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Source details
- Source
- Reserve Bank of India
- Type
- press-release
- Published by source
- 04 Sept 2026
- Document number
- 2026-2027/1049
- Issuing division
- Department of Communication
- Coverage area
- banking