Hero FinCorp Limited

RBI imposed a ₹10 lakh penalty on Hero Fincorp Limited for non-compliance with its directions on charging of interest. The company was found to have collected excess interest from certain loan accounts.

Hero Fincorp Limited must absorb the monetary penalty and remain exposed to any further action RBI may initiate for the same or related compliance issues. The order itself does not state any operational restriction, but it signals supervisory concern over interest-charging practices affecting borrowers.

• section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI imposed a monetary penalty of ₹3.10 lakh on Hero FinCorp Limited for non-compliance with RBI directions on fair practices. The company failed to provide loan terms and conditions in writing in the borrowers’ vernacular language.

Hero FinCorp Limited must absorb the monetary penalty and remains subject to any further RBI action that may be initiated. The action does not itself invalidate customer transactions, but it signals a compliance lapse in borrower communication and fair-practice disclosures.

• clause (b) of sub-section (1) of section 58G
• clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934