• India CSR Awards 2025
  • Guest Posts
Tuesday, August 5, 2025
  • Login
India CSR
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
India CSR
No Result
View All Result
FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025
ADVERTISEMENT
Home News

RBI imposes Rs 2.50 Cr monetary penalty on L&T Finance Holdings Ltd

India CSR by India CSR
October 21, 2023
in News
Reading Time: 3 mins read
RBI imposes Rs 2.50 Cr monetary penalty on L&T Finance Holdings Ltd
Share Share Share Share
  • RBI Fines L&T Finance Rs 2.50 Crore: L&T Finance faces a hefty penalty for breaching lending rules, failing to disclose borrower risks and interest rate changes.
  • Transparency Lapses Trigger Penalty: L&T Finance’s non-disclosure of borrower information violations result in a substantial monetary penalty imposed by the RBI.

The Reserve Bank of India (RBI) made headlines on October 20, 2023, by imposing a hefty monetary penalty of Rs 2.50 crore on L&T Finance Holdings Ltd. This significant fine came as a direct consequence of the company’s failure to adhere to specific directives issued by the central bank, concerning transparency and fairness in lending practices.

Violation of Borrower Information Disclosure

One of the primary reasons behind this financial reprimand was L&T Finance’s failure to provide its retail borrowers with crucial information about the gradation of risk and the rationale for applying different interest rates to distinct categories of borrowers. This crucial information was found missing from the loan application forms and sanction letters, a direct contravention of RBI guidelines.

FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025
ADVERTISEMENT

Furthermore, L&T Finance also neglected to notify its borrowers when applying a penal interest rate higher than initially communicated during the loan sanction process. Such omissions severely undermine the trust and fairness that borrowers are entitled to in the lending process, which is considered a grave violation of banking norms.

Lack of Transparency in Interest Rate Changes

In addition to the aforementioned discrepancies, the company failed to inform its borrowers about alterations in the terms and conditions of their loans when charging an annualized interest rate higher than what was initially communicated during the loan sanction. This lack of transparency and timely communication with borrowers is not only a breach of trust but also undermines the transparency and fairness the RBI aims to ensure within the lending sector.

RBI’s Directive and Imposition of Penalty

In response to these violations, the RBI issued a notice to L&T Finance, urging the company to explain why a penalty should not be imposed for its failure to comply with RBI’s directives. Subsequently, L&T Finance presented their response to the notice and made oral submissions during a personal hearing.

However, after careful consideration of the company’s response, additional submissions, and the oral statements, the RBI concluded that L&T Finance’s non-compliance with the aforementioned RBI directions was evident and warranted the imposition of a significant monetary penalty. The RBI’s decision sends a clear message that adherence to banking regulations and maintaining transparency in lending practices is non-negotiable and imperative for the financial sector’s integrity.

In conclusion, the monetary penalty imposed on L&T Finance serves as a stark reminder to financial institutions that the RBI will not tolerate deviations from established guidelines that aim to safeguard the interests of borrowers and maintain transparency within the lending sector. L&T Finance, along with other financial entities, will need to ensure strict compliance with RBI’s directives to maintain their integrity and trust in the eyes of both regulators and the borrowing public.

IndiaCSR Whatsapp Channel
Tags: L&T FinanceReserve Bank of India (RBI)

India CSR offers strategic corporate outreach opportunities to amplify your brand’s CSR, Sustainability, and ESG success stories.

📩 Contact us at: biz@indiacsr.in

Let’s collaborate to amplify your brand’s impact in the CSR and ESG ecosystem.

India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

Related Posts

Hindustan Zinc, GreenLine to Deploy EV, LNG Trucks for Logistics
News

Hindustan Zinc, GreenLine to Deploy EV, LNG Trucks for Logistics

21 hours ago
ED Arrests Viresh Joshi
News

ED Arrests Viresh Joshi in Rs 200 Crore Axis Mutual Fund Front-Running Scam Probe

24 hours ago
Tesla
News

5 Key Facts from Tesla’s Rs 1,996 Cr Florida Autopilot Crash Verdict

3 days ago
Elon Musk
News

Tesla Fined Rs 1,996 Cr in Florida Autopilot Crash Case

3 days ago
Shashi Prakash Goyal IAS – Chief Secretary of Uttar Pradesh – 2025
News

Shashi Prakash Goyal IAS – Chief Secretary of Uttar Pradesh – 2025

4 days ago
Anil Agarwal
News

Vedanta Profit Rises 13% to Rs 5,000 Cr on Record Output, Cost Cut

4 days ago
Hindustan Zinc, AIFF Unveil Premier Girls Football Academy in India
News

Hindustan Zinc, AIFF Unveil Premier Girls Football Academy in India

5 days ago
Rotaract RID 3012 Empowers Lives with H.O.P.E. 6.0 and Welcomes New Leadership at Hridayarambh
News

Rotaract RID 3012 Empowers Lives with H.O.P.E. 6.0 and Welcomes New Leadership at Hridayarambh

6 days ago
International Tiger Day: The Animal Care Organisation Bolsters Anti-Poaching Efforts at Ramgarh Vishdhari Tiger Reserve
News

International Tiger Day: The Animal Care Organisation Bolsters Anti-Poaching Efforts at Ramgarh Vishdhari Tiger Reserve

7 days ago
Load More
India CSR Awards India CSR Awards India CSR Awards
ADVERTISEMENT

LATEST NEWS

CSR: Odisha CM Awards Jindal Hostel’s Sweta Rani for Wushu Medal

CSR: HCLFoundation Finals 2025 Spot Talent Among Underserved Youth

Little Pepe Crypto Price Prediction: LILPEPE to Shine Bright in 2025 and Beyond, Here’s What’s Fueling Demand

Apraava Energy Empowers 2 Million Lives Through CSR in India

CSR: Career Mosaic Aims to Expand STEM Learning, Education Access

Rustomjee Plants for Sustainability in Landmark Kasara Drive

HZL HZL HZL
ADVERTISEMENT

TOP NEWS

CSR: Badshah Masala, Ennoble Improve Learning for Over 200 Children

Chhattisgarh Farmers Receive Rs. 5,751 Cr in Kharif Loans for 2025

Apraava Energy Empowers 2 Million Lives Through CSR in India

Rotaract RID 3012 Empowers Lives with H.O.P.E. 6.0 and Welcomes New Leadership at Hridayarambh

Little Pepe Crypto Price Prediction: LILPEPE to Shine Bright in 2025 and Beyond, Here’s What’s Fueling Demand

A Complete Guide to Chetak E-scooter Price and Variants

Load More

Advertisement

Image Slider
content writing services Guest Post Top 5 Reasons to have Sponsored Posts at India CSR – India’s Largest CSR Media stem learning R2V2 Technologies Private Limited

Interviews

Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak Mahindra Bank
Interviews

Driving Sustainable Impact: An Interview with Himanshu Nivsarkar, Kotak Mahindra Bank

by India CSR
May 22, 2025

By Rusen Kumar NEW DELHI (India CSR): Himanshu Nivsarkar, Senior Executive Vice President and Head of CSR & ESG at Kotak...

Read moreDetails
Balamurugan Thevar, CSR Head at Shriram Finance

Empowering Women Drivers: An Interview with Balamurugan Thevar, CSR Head at Shriram Finance

May 20, 2025
N E Sridhar, the Chief Sustainability Officer at Titan Company Ltd.

Empowering Rural Craft Entrepreneurs: An Interview with N E Sridhar, Titan Company

May 15, 2025
Geetaj Channana, the Head of Corporate Strategy at Vivo India

Empowering Young Innovators Across India: An Interview with Geetaj Channana, the Head of Corporate Strategy at Vivo India

April 25, 2025
Load More
FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025 FKCCI Announces India CSR & Sustainability Conference &  Awards 2025
ADVERTISEMENT
Facebook Twitter Youtube LinkedIn Instagram
India CSR Logo

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium services, we invite you to partner with us.

Follow us on social media:


Dear Valued Reader

India CSR is a free media platform that provides up-to-date information on CSR, Sustainability, ESG, and SDGs. They need reader support to continue delivering honest news. Donations of any amount are appreciated.

Help save India CSR.

Donate Now

donate at indiacsr

  • About India CSR
  • Team
  • India CSR Awards 2025
  • Partnership
  • Guest Posts
  • Services
  • Content Writing Services
  • Business Information
  • Contact
  • Privacy Policy
  • Terms of Use
  • Donate

Copyright © 2025 - India CSR | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers

Copyright © 2025 - India CSR | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.