The Reserve Bank of India (RBI) has imposed a penalty of ₹6.2 lakh on Hinduja Leyland Finance for regulatory compliance violations related to microfinance loan pricing and securitisation of assets. According to the central bank, the company did not have a board-approved policy governing the pricing of its microfinance loans, while its inspection also found activities that amounted to synthetic securitisation. The penalty follows an RBI inspection of the company’s books and accounts as of March 31, 2025. The regulator said the action was taken after considering the company’s response to the show-cause notice and submissions made during a subsequent hearing. The RBI clarified that the penalty relates to regulatory compliance deficiencies and should not be interpreted as invalidating any transactions or agreements entered into by the company. The action underscores the central bank’s continued focus on ensuring that regulated financial entities comply with prescribed norms governing lending practices, pricing policies and securitisation activities.
RBI Penalises Hinduja Leyland Finance Over Microfinance, Securitisation Norms
