The Reserve Bank of India has imposed a monetary penalty of Rs 70,000 on Repco Home Finance Limited for non-compliance with regulatory directions relating to the Fair Practice Code.

The penalty was imposed through an order dated June 5, 2026, under the provisions of the National Housing Bank Act, 1987.

The action follows a statutory inspection conducted by the National Housing Bank (NHB) with reference to the company's financial position as of March 31, 2025. Based on supervisory findings and subsequent correspondence, the RBI issued a show-cause notice seeking an explanation from the company regarding the identified compliance deficiencies.

After reviewing the company's response and oral submissions made during a personal hearing, the central bank concluded that the violation had been established.

According to the RBI, Repco Home Finance failed to adequately disclose its approach for risk-based borrower classification and the rationale for charging different interest rates to different categories of borrowers in its loan application forms and sanction letters, as required under the Fair Practice Code guidelines.

The RBI clarified that the penalty has been imposed solely on account of regulatory compliance shortcomings and does not affect the validity of any transaction or agreement entered into by the company with its customers. The regulator also noted that the action is without prejudice to any further measures that may be initiated against the company.