Case Brief
By an order dated April 5, 2023, RBI imposed a monetary penalty of Rs 6.77 crore on Mahindra & Mahindra Financial Services Limited, Mumbai. RBI said the company had not complied with the RBI's 2016 directions applicable to systemically important NBFCs and deposit-taking NBFCs. The violations related to fair practices: failure to disclose the annualised rate of interest at the time of loan sanction and failure to give notice to borrowers when the company charged a higher rate than what had been communicated at sanction. RBI stated the action was based on deficiencies in regulatory compliance and did not pronounce on the validity of any customer transaction or agreement.
Action Snapshot
- Primary Impact
- Fine: Rs 6.77 Cr
- Entity Type
- NBFC
- Location
- Mumbai, Maharashtra