RBI imposes monetary penalty on the 3 entities; These actions are based on deficiencies in regulatory compliance
FinTech BizNews Service
Mumbai, 24 September, 2026: Reserve Bank of India has imposed a monetary penalty on Hero Fincorp, Ola Financial Services and KLM Axiva Finvest. The total penalty anount comes to Rs15.80 lakh.
RBI imposes monetary penalty on Hero Fincorp
The Reserve Bank of India (RBI) has, by an order dated September 22, 2026, imposed a monetary penalty of Rs10 lakh (Rupees Ten Lakh only) on Hero Fincorp Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Fair Practices Code for Lenders – Charging of Interest’. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 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.
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:
The company collected excess interest from certain loan accounts.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
Reserve Bank of India imposes monetary penalty on Ola Financial Services
The Reserve Bank of India (RBI) has, by an order dated September 24, 2026, imposed a monetary penalty of Rs3.10 lakh (Rupees Three lakh ten thousand only) on Ola Financial Services Private Limited (the company) for non-compliance with certain directions issued by RBI on ‘Know Your Customer (KYC)’. This penalty has been imposed in exercise of powers conferred on RBI under the provisions of section 30(1) read with section 26(6) of the Payment and Settlement Systems Act, 2007.
The statutory inspection of the company was conducted by RBI with reference to its operations for the period from January 2025 to November 2025. Based on the supervisory findings of non-compliance with the provisions of 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 provisions of RBI directions.
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:
The company failed to carry out risk categorisation of certain customers.
The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
RBI imposes monetary penalty on KLM Axiva Finvest
The Reserve Bank of India (RBI) has, by an order dated September 22, 2026, imposed a monetary penalty of Rs2.70 lakh (Rupees Two lakh seventy thousand only) on KLM Axiva Finvest Limited (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Auction’ procedure. This penalty has been imposed in exercise of powers conferred on RBI under Section 58-G(1)(b) read with Section 58-B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the 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.
After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company had failed to pay the surplus amount realised from the auction of pledged gold articles, over and above the loan outstanding, to certain borrowers.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
