RBI Penalises Hero Fincorp, KLM Axiva Finvest, Ola Financial Services For Regulatory Violations

The Reserve Bank of India on Thursday imposed monetary penalties on three financial entities for non-compliance with its regulatory directions.

A penalty of ₹10 lakh was imposed on Hero Fincorp Limited for collecting excess interest from certain loan accounts, in violation of RBI's directions on the Fair Practices Code for Lenders – Charging of Interest.

A ₹2.70 lakh penalty was imposed on KLM Axiva Finvest Limited for failing to pay certain borrowers the surplus amount realised from the auction of pledged gold articles over and above the outstanding loan amount. The violation was found during a statutory inspection with reference to the company's financial position as on March 31, 2025.

Ola Financial Services Private Limited was fined ₹3.10 lakh for failing to carry out risk categorisation of certain customers, in violation of RBI's directions on Know Your Customer.

“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.” the regulator clarified

Click here to view/download the RBI order against Hero Fincorp Limited

Click here to view/download the RBI order against KLM Axiva Finvest Limited

Click here to view/download the RBI order against Ola Financial Services Private Limited