The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Can Fin Homes Limited for non-compliance with certain provisions of the Fair Practices Code prescribed by the regulator.

The penalty was imposed through an order dated June 18, 2026, under the powers vested in RBI under Section 52A of the National Housing Bank Act, 1987.

The action follows a statutory inspection conducted by the National Housing Bank (NHB) based on the company's financial position as of March 31, 2025. Following the inspection, RBI issued a show-cause notice to the company citing supervisory observations related to non-compliance with regulatory directions.

After examining the company's response and oral submissions made during the personal hearing, RBI found that the company had failed to clearly disclose the bifurcation between principal and interest components in the loan instalments collected from borrowers.

The central bank clarified that the penalty relates solely to deficiencies in regulatory compliance and does not affect the validity of any transactions or agreements entered into by the company with its customers. RBI also stated that the penalty is without prejudice to any further action that may be initiated against the company.