The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2.70 lakh on Can Fin Homes for non-compliance with certain provisions of the directions issued by RBI on ‘Fair Practices Code’. This penalty has been imposed in exercise of the powers conferred on RBI under Section 52A of the National Housing Bank Act, 1987.

The statutory inspection of the company was conducted by National Housing Bank with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.

After considering the company's reply to the notice and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty. The company failed to clearly indicate the bifurcation between interest and principal in the loan instalments collected from borrowers.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

Can Fin Homes is a Housing Finance Company offers finance for construction of a house, loan for the purchase of a flat or house, finance for the acquisition of a plot and construction of a house on the same.

Can Fin Homes Ltd.