The Reserve Bank of India (RBI) announced on Friday that it has fined Hero FinCorp Limited Rs 3.1 lakh for not following certain rules related to fair practices. The RBI clarified that this fine is due to regulatory issues and does not question any transactions or agreements the company has with its customers.
An inspection of Hero FinCorp’s financial position as of March 31, 2023, revealed non-compliance with RBI guidelines. Following this inspection, the RBI issued a notice to the company, asking why they should not be fined for failing to comply with the rules.
After reviewing Hero FinCorp’s response, listening to their arguments, and examining additional information provided by the company, the RBI concluded that the company had indeed violated regulations, justifying the monetary penalty.
Specifically, Hero FinCorp failed to provide loan terms and conditions in the local language understood by borrowers. The RBI also mentioned that this fine does not prevent further actions that might be taken against the company.
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