The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 2.70 lakh (Rupees Two Lakh Seventy Thousand only) on Muthoot FinCorp Limited for non-compliance with directions issued by RBI on ‘Internal Ombudsman’. The RBI has imposed a penalty of Rs 2.70 lakh on Muthoot Fincorp for failing to put in place a system for automatic redressal of complaints.
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| RBI Imposes Rs 2.7 lakh Penalty on Muthoot FinCorp |
RBI Imposes ₹2.7 lakh Penalty on Muthoot FinCorp
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.70 lakh on Muthoot FinCorp Limited for non-compliance with directions issued by RBI on ‘Internal Ombudsman’.
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This penalty has been imposed in exercise of powers conferred on RBI under 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 Penalty on Muthoot FinCorp: Background
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2024.
RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty.
- The 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.
This 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. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
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About Muthoot FinCorp
Muthoot FinCorp, the flagship company of Muthoot Pappachan Group, is India’s Leading Non Banking Financial Company (NBFC) that offers hassle free & instant online gold loans for every need.
With a business history since 1887, Muthoot Pappachan Group (MPG) which planted its roots in retail trading, later diversified into various sectors including Financial Services, Hospitality, Automotive, Realty, IT Services, Precious Metals, and Alternate Energy.
Vision of Muthoot FinCorp
The Vision of Muthoot FinCorp is to be the most trusted financial service provider, at the doorstep of the common man, satisfying him immediately with easy and simple products.
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About Reserve Bank of India (RBI)
The Reserve Bank of India was established on April 1, 1935 according to the provisions of the Reserve Bank of India Act, 1934. The headquarters of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
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Initially the bank was privately owned, but since nationalization in 1949 it is fully owned by the Government of India.
Governor of RBI
The current Governor of the Reserve Bank of India is Sanjay Malhotra. He replaced Shaktikanta Das as the governor.
Deputy Governor of RBI
The 4 Deputy Governors are appointed in the Reserve Bank of India (RBI), who are as follows.
- M. Rajeshwar Rao
- T. Rabi Sankar
- Swaminathan J
- Dr Poonam Gupta
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Static Current Affairs related to RBI for upcoming exams
- Establishment: 1 April 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- Deputy Governor: Swaminathan J, M. Rajeshwar Rao, T. Rabi Sankar and Poonam Gupta
- Ownership: Ministry of Finance , Government of India
Static Current Affairs related to Muthoot Pappachan Group for upcoming exams
- Founded: 1887
- Headquarters: Thiruvananthapuram, Kerala
- Patron founder: Ninan Mathai Muthoot
- Founder: Muthoot Pappachan
- Chairman & MD: Thomas John Muthoot
- Promoter Director: Thomas George Muthoot; Thomas Muthoot
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