The Reserve Bank of India (RBI) has imposed monetary penalties on six financial companies, including major non-bank lender Muthoot Finance, for failing to comply with regulatory guidelines.
The penalties issued by the central bank include:
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Avail Financial Services: Fine of ₹6.20 lakh for breaching single-party exposure limits and because its managing director held concurrent directorships in two other Middle Layer NBFCs.
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Muthoot Finance: Fine of ₹5.80 lakh for failing to maintain a periodic review system for account risk categorisation and lacking robust software to identify and report suspicious transactions.
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Satya MicroCapital: Fine of ₹3.10 lakh for failing to classify certain restructured accounts as non-performing assets (NPAs).
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PAN Emami Cosmed: Fine of ₹3.10 lakh for exceeding regulatory credit exposure limits for a single group of parties.
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Dhani Loans and Services: Fine of ₹2.70 lakh for non-compliance.
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Muthoot Vehicle and Asset Finance: Fine of ₹2.70 lakh for regulatory lapses.
The RBI stated that these actions are based on deficiencies in regulatory compliance rather than an assessment of the validity of any transaction or agreement between the companies and their customers.
