RBI imposes ₹70,000 penalty on Repco Home Finance for non-compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹70,000 on Repco Home Finance Limited for failing to comply with its 'Fair Practice Code' guidelines. The penalty, dated June 5, 2026, was announced in an official press release on June 12, 2026.

The action follows a statutory inspection conducted by the National Housing Bank (NHB) based on Repco Home Finance's financial position as of March 31, 2025. The inspection revealed that the company did not disclose its approach for risk gradation and the rationale for charging different interest rates to various borrower categories in its application forms and sanction letters.

RBI issued a show-cause notice to the company, seeking an explanation for the non-compliance. After reviewing the company's written response and oral submissions during a personal hearing, the central bank determined that the violation warranted a monetary penalty.

The RBI clarified that the penalty is strictly for regulatory deficiencies and does not affect the validity of any transactions or agreements between the company and its customers. The central bank also noted that this action does not preclude further measures against the company if deemed necessary.

This development underscores the RBI's commitment to ensuring transparency and adherence to fair practices in the financial sector, particularly in housing finance institutions.

Source: Reserve Bank of India press release, Fri, 12 Jun 2026 17:45:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62924