: RBI imposes penalty on Muthoot Finance worth Rs 10 lakh for not complying KYC norms #FinanceIndia #StockMarketNEWS RBI imposes penalty on Muthoot Finance worth Rs 10 lakh for not complying KYC norms

@StockMarketNEWS Wed 25 Nov, 2020

Posted in: #FinanceIndia #StockMarketNEWS

RBI imposes penalty on Muthoot Finance worth Rs 10 lakh for not complying KYC norms #FinanceIndia #StockMarketNEWS
RBI imposes penalty on Muthoot Finance worth Rs 10 lakh for not complying KYC norms New Delhi, Nov 20 (KNN) The Reserve Bank of India (RBI) has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with directions on maintaining loan to value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans of over Rs 5 lakh.

The apex banking body has also imposed a penalty of Rs 5 lakh on Manappuram Finance, Thrissur for non-compliance with directions on verification of ownership of gold jewellery.

The statutory inspection of Muthoot Finance Limited with reference to its financial position as on March 31, 2018 and March 31, 2019, revealed, inter alia, non-compliance with the abovementioned directions issued by RBI. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI, RBI said on Thursday.

After considering the company’s reply to the notice, oral submissions made during the personal hearings and examination of additional submissions made by it, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty, it added.

Similarly, in case of Manappuram Finance, RBI said statutory inspection of the company with reference to its financial position as on March 31, 2019, revealed non-compliance with the directions issued by it.

RBI said that the 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.

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