LIC Housing Finance Limited, Mumbai

RBI imposed a penalty of Rs 49.7 lakh on LIC Housing Finance Limited for non-compliance with Fair Practices Code requirements under the 2021 housing finance directions. The company also failed to make required disclosures on interest rates and risk gradation and levied pre-payment penalties in specified cases.

LIC Housing Finance Limited must absorb the monetary penalty and review its lending documentation and pricing disclosures for compliance with RBI’s Fair Practices Code requirements. The order is penal in nature but does not itself cancel or restrict the company’s operations; RBI also noted that further action may still be initiated separately.

• section 52A of the National Housing Bank Act, 1987
• Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021

RBI imposed a ₹5 lakh penalty on LIC Housing Finance Limited, Mumbai. The penalty was for non-compliance with NHB directions, including failure to create and register a floating charge for depositors.

LIC Housing Finance must bear the penalty and continue complying with the applicable NHB directions and statutory requirements. The order does not impose an operational restriction, but it highlights compliance obligations around depositor protection and charge registration.

• clause (b) of sub-section (1) of section 52A read with clause (aa) of sub-section (3) of section 49 of the National Housing Bank Act, 1987 (NHB Act)
• section 29B of NHB Act