RBI Penalizes Can Fin Homes Limited Over Non-Compliance in Borrower Installment Statements
The Reserve Bank of India (RBI) has imposed a monetary penalty on Can Fin Homes Limited for non-compliance with specific directions related to its 'Fair Practices Code'. The penalty was levied following violations concerning the bifurcation of interest and principal components in borrower installment statements.In exercising powers conferred under Section 52A of the National Housing Bank Act, 1987, the RBI imposed a fine of Rs. 2,70,000/- on Can Fin Homes Limited. The penalty related to non-compliance with certain provisions of the directions issued by the RBI concerning the Fair Practices Code.
The specific area of concern was the failure to adhere to Paragraph 80.4 of the Master Direction—Non-Banking Financial Company—Housing Finance Company (Reserve Bank) Directions, 2021. This provision stipulates that installments collected from borrowers must clearly indicate the bifurcation between interest and principal.
Regarding the financial implications of this regulatory action, the company reported that there is no material impact on its financial operations or other activities due to the penalty payable.
Can Fin Homes Limited has taken definitive steps to address the identified compliance gaps. The company implemented corrective measures effective April 1, 2026. These actions include incorporating the bifurcation of principal and interest into the Statement of Account, ensuring that details mentioning separately the Principal, Interest, and charges are included alongside the instalment received from the borrower. Following these implementations, the company confirmed it is now in compliance with the RBI directions.
The key details of the communication received by Can Fin Homes Limited from the RBI are summarized below:
| Detail | Information |
|---|---|
| Authority | Reserve Bank of India (RBI) |
| Penalty Amount | Rs. 2,70,000/- |
| Nature of Non-Compliance | Failure to clearly indicate the bifurcation between interest and principal in borrower installment statements, as per Paragraph 80.4 of the Master Direction. |
| Action Taken by Company | Implemented corrective measures effective April 1, 2026, fully incorporating interest and principal breakdown into account statements. |
CANFINHOME Stock Price Movement
On Friday, Can Fin Homes Limited shares edged higher to settle at ₹885.35, gaining 0.15% on the day. The stock saw a traded volume of 109,890 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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