RBI imposes Rs 3.10-lakh penalty on Hero Fincorp for rule violations

Reserve Bank of India

The Reserve Bank of India (RBI) on May 24 said it has imposed Rs 3.10 lakh penalty on Hero Fincorp Ltd for rule violations.

The penalty was imposed for non-compliance with certain provisions of the ‘Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ issued by RBI, the central bank said in a press release.

Further, the RBI said Hero Fincorp did not convey the terms and conditions of loans in writing to the borrowers in the vernacular language understood by them.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers, the RBI said.