Document title: RBI imposes monetary penalty on Hinduja Leyland Finance Limited
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/1049
Date: 04 September 2026
Regulatory and policy measures
The RBI, exercising powers under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934, issued an order on 02 September 2026 imposing a monetary penalty of ₹6.20 lakh on Hinduja Leyland Finance Limited for non‑compliance with RBI directions on pricing of micro‑finance loans and securitisation of standard assets. The penalty follows a statutory inspection of the company’s financial position as of 31 March 2025, after which a notice was issued requiring the company to show cause why the penalty should not be imposed. After considering the company’s written reply, additional submissions and oral arguments during a personal hearing, the RBI sustained two charges: the absence of a board‑approved policy on micro‑finance loan pricing and the undertaking of activities characterised as ‘synthetic securitisation’. The RBI clarified that the penalty does not adjudicate the validity of any transaction with customers and is without prejudice to any further action that may be taken against the company.
The enforcement action underscores the RBI’s focus on strict adherence to regulatory guidelines governing NBFCs, particularly in the areas of loan pricing transparency and securitisation practices.