Case Brief
RBI, acting under Section 45L(1)(b) of the RBI Act, 1934, directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease recovery or repossession activity through outsourcing arrangements until further orders. The NBFC is still allowed to carry out recovery or repossession through its own employees. RBI said the direction was issued due to material supervisory concerns relating to the management of MMFSL's outsourcing activities.
Action Snapshot
- Primary Impact
- Directive prohibition
- Entity Type
- NBFC
- Location
- Mumbai
- Order Date