RBI Penalizes Can Fin Homes! Fine Imposed Over Failure to Disclose Interest and Principal Bifurcation
The Reserve Bank of India (RBI) has levied a significant monetary penalty against Can Fin Homes Limited. The fine, totaling ₹2.70 lakh (Rupees Two Lakh Seventy Thousand only), was imposed in an order dated June 18, 2026. This action targets non-compliance with specific directions set forth by the RBI regarding its 'Fair Practices Code'.Regulatory Failure Leads to Monetary Penalty
The penalty underscores a regulatory failure concerning loan transparency at Can Fin Homes Limited. The disciplinary measure was taken in exercise of powers granted under Section 52A of the National Housing Bank Act, 1987. This action follows supervisory findings generated from a statutory inspection conducted by the National Housing Bank.The review was conducted against the company's financial position as recorded on March 31, 2025. The RBI initiated proceedings after receiving submissions and holding a personal hearing with the company. Upon consideration of these inputs, the penalty decision was finalized regarding specific deficiencies noted during the audit.
Specific Non-Compliance Detail
The primary charge sustained against Can Fin Homes Limited centered on installment collection practices. Specifically, the company failed to clearly indicate the bifurcation between interest and principal within the loan installments collected from borrowers. This deficiency directly relates to fulfilling mandated regulatory disclosure requirements for consumers.The RBI has stated that this action is solely based on deficiencies in regulatory compliance. It is crucial to note that the imposition of this monetary penalty is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Furthermore, the fine does not preclude the possibility of other actions being initiated against the entity by the central bank.
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