RBI imposes monetary penalty on Muthoot Finance Limited

The penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934.

RBI imposes monetary penalty on Muthoot Finance Limited

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1,90,000/- (Rupees One Lakh Ninety Thousand only) on Muthoot Finance Limited (the company) for non-compliance with certain provision of ‘Know Your Customer (KYC) Directions, 2016’ issued by RBI.

The penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934.

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The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2022.

The Central Bank has found the charge of allotting more than one Unique Customer Identification Code (UCIC) to its individual customers was sustained that imposes the monetary penalty.

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