Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹10 lakh on Muthoot Finance Limited, Ernakulam, for non-compliance with RBI directions relating to maintenance of the Loan-to-Value ratio in gold loans and obtaining a copy of the borrower’s PAN card for gold loans above ₹5 lakh. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934, after inspection findings and consideration of the company’s response and submissions.
Action Snapshot
- Primary Impact
- Fine: Rs 10.0 L
- Entity Type
- NBFC
- Location
- Ernakulam
- Order Date