Recorded RBI impact
Fine: Rs 70,000
Monetary penalty · Fresh imposition
Published by RBI
12 Jun 2026
Case Brief
By an order dated June 05, 2026, RBI imposed a monetary penalty of ₹70,000 on Repco Home Finance Limited. The penalty was levied for non-compliance with RBI directions on the Fair Practice Code, after supervisory inspection findings and a show-cause process. RBI held that the company failed to disclose the approach for gradation of risk and the rationale for charging different interest rates to different categories of borrowers in application forms and sanction letters. The action was taken under section 52A of the National Housing Bank Act, 1987 and does not itself pronounce on the validity of any customer transaction or agreement.
Why RBI Acted
RBI imposed a monetary penalty under section 52A of the National Housing Bank Act, 1987 after supervisory inspection and show-cause proceedings found non-compliance with RBI directions on the Fair Practice Code. The sustained charge was that the company failed to disclose the approach for gradation of risk and the rationale for charging different rates of interest to different categories of borrowers in its application forms and sanction letters.
Operating Impact
Repco Home Finance Limited must absorb the monetary penalty and address the compliance gap identified by RBI. The finding signals expected improvements in disclosure practices in borrower-facing documentation, especially around risk-based pricing and interest-rate differentiation.
Regulatory Basis
- section 52A of the National Housing Bank Act, 1987
Action Facts
- Primary Impact
- Fine: Rs 70,000
- Order Date
- 5 Jun 2026
- Effective From
- 5 Jun 2026
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC