- The RBI fined Hero Fincorp Rs 10 lakh for charging excess interest on loans
- Hero Fincorp was found non-compliant with RBI's Fair Practices Code for Lenders
- Ola Financial Services was penalised for KYC non-compliance during 2025 operations
The Reserve Bank of India (RBI) penalised Hero Fincorp Ltd. for Rs 10 lakh, citing excess interest, and fined Ola Financial Services Pvt. according to press releases from the regulatory body on Thursday. The RBI imposed the monetary penalty on Hero Fincorp citing non-compliance with select provisions of the directions issued by the RBI on ‘Fair Practices Code for Lenders – Charging of Interest'.
The bank undertook a statutory inspection related to its financial position as on March 31, 2025.
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Similarly the RBI fined Ola Financial Services Pvt. for non-compliance according to certain directions issued by RBI on ‘Know Your Customer (KYC)'. The central bank conducted its statutory inspection with reference to its operations for the period from January 2025 to November 2025.
"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 said directions, " the release said.
"After considering the company's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty," it added.
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Hero Fincorp Ltd. collected excess interest from certain loan accounts while Ola Financial Services failed to carry out risk categorisation of certain customers, the release said.
This RBI added that it took this action based on deficiencies in regulatory compliance and it did not intend to pronounce upon the validity of any transaction or agreement entered into by the two firms with its customers. It clarified that further imposition of these monetary penalties is without prejudice to any other action that may be initiated by it against the firm.
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