Mumbai, May 24: The Reserve Bank of India (RBI) has imposed a penalty of Rs 3,10,000 on Hero FinCorp Limited for breach of norms related to the fair practices code for NBFCs.
An RBI inspection has revealed that Hero FinCorp did not convey the terms and conditions of loans in writing to the borrowers in the vernacular language understood by them. The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2023.
Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the directions.