Document title: RBI imposes monetary penalty on Hero Fincorp Limited
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1180
Date: 24 September 2026
Banking and Credit
The RBI’s statutory inspection, referencing Hero Fincorp Limited’s financial position as on 31 March 2025, identified that the company had collected excess interest from certain loan accounts, thereby breaching the Fair Practices Code for Lenders – Charging of Interest. The excess interest collection was deemed a non‑compliance with the RBI’s directions on fair lending practices.
Regulatory and Policy Measures
Pursuant to sections 58G(1)(b) read with 58B(5)(aa) of the Reserve Bank of India Act, 1934, the RBI issued a notice to Hero Fincorp Limited asking it to show cause why a penalty should not be imposed. After considering the company’s written reply, additional submissions, and oral arguments presented during a personal hearing, the RBI sustained the charge of excess interest collection and imposed a monetary penalty of ₹10 lakh (Rupees Ten Lakh only). The penalty is imposed without prejudice to any further action the RBI may initiate against the company and does not comment on the validity of any underlying loan agreements.
The order was dated 22 September 2026 and released as a press note on 24 September 2026, signed by the Chief General Manager, Brij Raj.
In conclusion, the RBI has exercised its supervisory powers to enforce compliance with fair‑practice lending norms, penalising Hero Fincorp Limited for excess interest collection and signalling continued regulatory vigilance over NBFC lending practices.