The Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on Can Fin Homes Limited, a housing finance company, for non-compliance with the Fair Practices Code. The violation specifically related to failure in bifurcation of charges in loan account statements. Can Fin Homes is a subsidiary of Canara Bank and is registered as a Housing Finance Company regulated by RBI. The penalty was imposed under provisions of the National Housing Bank Act, 1987, exercising RBI's supervisory jurisdiction.

Can Fin Homes' penalty is significant not for its quantum — ₹2.70 lakh is negligible for a listed HFC — but for what it signals about RBI's supervisory priorities post the NHB-to-RBI regulatory transfer. Since 2019, RBI took over regulation of Housing Finance Companies from the National Housing Bank. This transition brought HFCs under stricter scrutiny aligned with NBFC norms.

The Fair Practices Code (FPC) is an RBI-mandated framework requiring lenders to maintain transparency in loan pricing, processing fees, prepayment charges, and account statements. The specific breach here — non-bifurcation of charges in loan statements — means borrowers could not clearly see the breakup of what they were paying, violating the FPC's transparency mandate.

For RBI Grade B aspirants, this case illustrates three regulatory concepts: First, RBI's powers to impose penalties on regulated entities under applicable statutes. Second, the Fair Practices Code as a consumer protection instrument distinct from prudential norms. Third, the post-2019 supervisory architecture where HFCs are now subject to RBI's oversight rather than NHB's. Penalties like this are routine enforcement actions — they don't indicate systemic failure but reflect RBI's zero-tolerance stance on conduct-of-business norms even for technical violations.