RBI fines Muthoot Finance, 5 others
Mumbai: The Reserve Bank of India (RBI) on Friday announced that it has imposed monetary penalties on six companies, including non-bank lender Muthoot Finance, for
Mumbai: The Reserve Bank of India (RBI) on Friday announced that it has imposed monetary penalties on six companies, including non-bank lender Muthoot Finance, for non-compliance with various regulatory norms. The central bank imposed a Rs 5.80 lakh penalty on Muthoot Finance, Rs 3.10 lakh each on Satya MicroCapital and PAN Emami Cosmed, Rs 2.70 lakh each on Dhani Loans and Services and Muthoot Vehicle and Asset Finance, and Rs 6.20 lakh on Avail Financial Services, notifications said.
Muthoot Finance was penalised for failing to put in place a system of periodic review of risk categorisation of accounts and non-deployment of robust software for effective identification and reporting of suspicious transactions, the RBI said. The monetary penalty on Avail Financial Services was imposed as the managing director of the company held directorship in two other NBFCs-Middle Layer, and the company had breached the regulatory single party exposure limit.
The central bank imposed a monetary penalty on PAN Emami Cosmed as the company had breached the prescribed regulatory limit for credit exposure to a
single group of parties. Further, Satya MicroCapital was penalised as the company failed to classify certain accounts as 'non-performing assets' upon restructuring.
The BriefWire