Case Brief
RBI imposed a monetary penalty of ₹11.50 lakh on Mahindra & Mahindra Financial Services Limited after a statutory inspection found non-compliance with directions on Fair Practices Code and Internal Ombudsman for Regulated Entities. RBI said the company had levied revised foreclosure charges on certain borrower accounts without a suitable condition in the loan agreements, and had failed in some cases to escalate complaints to the Internal Ombudsman and communicate final decisions to complainants within the prescribed time. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Action Snapshot
- Primary Impact
- Fine: Rs 11.5 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty