RBI Imposes Penalty on Hinduja Housing Finance Limited Over Governance Lapses

The Reserve Bank of India (RBI) has levied a monetary penalty amounting to Rs 1.80 lakh on the company named Hinduja Housing Finance Limited in pursuance of its powers granted under Section 52A of the National Housing Bank Act, 1987. This penalty has been imposed on the company for non-adherence to certain instructions issued by the RBI relating to ‘Governance’.

The RBI has disclosed this decision through a Press Release dated May 08, 2026. Previously, the RBI had conducted a statutory inspection of the concerned company in accordance with its financial position as of March 31, 2025. The inspection concluded that the company had not complied with certain instructions issued by the RBI.

Consequently, a show cause notice (SCN) was issued to the company asking it to disclose the reason behind this non-compliance and explain why the proposed penalty should not be imposed on it. In response to the notice, the company furnished a detailed reply.

After considering the reply and oral submissions of the company made during the personal hearing, the RBI discovered that the company was fairly liable for the proposed penalty. Accordingly, the proposed penalty of Rs 1.80 lakh was sustained on Hinduja Housing Finance Limited.

It was further noted that the company had not taken prior written approval from the RBI before changing its management, which led to more than 30% of its directors being replaced, not counting independent directors.