The Reserve Bank of India (RBI) has imposed a Rs 6.20 lakh monetary penalty on Hinduja Leyland Finance Ltd for non-compliance with certain regulatory directions relating to the pricing of microfinance loans and securitisation of standard assets.

The penalty was imposed through an order dated September 2, 2026, following an RBI inspection of the company’s financial position as of March 31, 2025.

According to the RBI, the company did not have a Board-approved policy for pricing microfinance loans and had undertaken activities in the nature of synthetic securitisation, which led to the regulatory action.

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