Case Brief
RBI imposed a monetary penalty of ₹5 lakh on M/s Muthoottu Mini Financiers Pvt Ltd. under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934. The penalty followed an inspection conducted with reference to the company’s financial position as on March 31, 2013, which found violations of RBI directions/orders concerning gold-loan Loan-to-Value (LTV) ratios, issuance and renewal of Non-Convertible Debentures, loans against NCDs, Fair Practices Code compliance, and balance-sheet disclosures. After a show-cause notice and personal hearing, RBI concluded that the violations were serious and substantiated, and imposed the penalty.
Action Snapshot
- Primary Impact
- Fine: Rs 5.00 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty