RBI Penalty: The Reserve Bank has imposed a fine of crores on several financial institutions including Mahindra Financial Services Limited. This penalty has been imposed due to ignoring the rules.
RBI Penalty: The Reserve Bank of India has imposed a hefty penalty on Mahindra and Mahindra Financial Services Limited. A fine of Rs 6.77 crore has been imposed by RBI on this financial institution (RBI Action on Financial Institution). This penalty has been imposed on Mahindra for non-compliance of RBI’s financial rules.
Actually, the Reserve Bank did not disclose the interest rates while giving loans to the customers, which is a violation of RBI rules. After this, the Reserve Bank took action on this financial institution and imposed a fine of Rs 6.77 crore. Releasing a statement on this matter, the RBI said that between March 31, 2019 and March 31, 2020, an investigation was conducted of Mahindra & Mahindra Financial Services.
What did RBI find in its investigation?
The Reserve Bank found in its investigation that Mahindra & Mahindra did not properly follow the rules for disclosing the interest rate while giving loans to customers. Along with this, after the change in the rules, the company did not even inform its customers. After this, RBI imposed a hefty fine of Rs 6.77 crore on the company for ignoring the rules.
Fine imposed on Indian Bank
Apart from Mahindra & Mahindra Financial Services, the Reserve Bank has imposed a hefty penalty of Rs 55 lakh on Indian Bank. The bank had violated the rules related to KYC of RBI. After which, while taking action against the bank, RBI has imposed a fine of Rs 55 lakh. Apart from this, the Reserve Bank has imposed a fine of Rs 10.50 lakh while taking action on Muthoot Money Ltd for non-compliance of guidelines related to NBFC fraud.
