Hewlett Packard Financial Services (India) Private Limited

Following a statutory inspection of the company with reference to its financial position as on March 31, 2022, RBI issued a show-cause notice based on supervisory findings of non-compliance. After considering the company’s reply and oral submissions, RBI sustained charges that the company failed to put in place a system for periodic review of risk categorization of accounts, failed to disclose and explicitly communicate the rate of interest, the approach for gradations of risk and the rationale for differential interest rates in the loan application form and sanction letter, and failed to form an IT Strategy Committee and an IT Steering Committee. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.

The company must absorb the monetary penalty and address the compliance gaps identified by RBI. The release does not impose an operational ban, but it signals continued supervisory scrutiny and the possibility of further regulatory action if deficiencies persist.