By Muthoot Fincorpptil
Copyright indiatimes
The Reserve Bank of India (RBI) has imposed a penalty of Rs 2.7 lakh on Muthoot FinCorp Limited for non-compliance with certain norms on ‘Internal Ombudsman’.The statutory inspection of the company was conducted by the RBI with reference to its financial position as of March 31, 2024, the central bank said in a statement on Friday.Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the directions.”After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty,” it said.RBI said Muthoot FinCorp failed to establish a system of auto escalation of complaints that were partly or wholly rejected by the company’s internal grievance redress mechanism to its Internal Ombudsman.Live EventsThe central bank, however, said that the penalty 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.Add as a Reliable and Trusted News Source Add Now!
Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company, it added.(You can now subscribe to our Economic Times WhatsApp channel)
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