RBI imposes monetary penalty on Muthoot Finance Limited

Case Brief

The Reserve Bank of India imposed a monetary penalty on Muthoot Finance Limited by order dated July 10, 2026. The penalty was levied for non-compliance with certain provisions of RBI’s Know Your Customer (KYC) Directions, following a statutory inspection, a show-cause notice, and consideration of the company’s reply and oral submissions. RBI said the company failed to put in place a system for periodic review of risk categorisation of accounts and failed to put in place robust software for effective identification and reporting of suspicious transactions.