Case Brief
What Happened
RBI imposed a monetary penalty of ₹1,90,000 on Muthoot Finance Limited by order dated July 15, 2024. The action followed a statutory inspection and subsequent show-cause proceedings, in which RBI found sustained non-compliance with certain provisions of the Know Your Customer (KYC) Directions, 2016, including the allotment of more than one Unique Customer Identification Code (UCIC) to individual customers. RBI stated that the penalty was imposed under the RBI Act, 1934 and that it does not pronounce on the validity of the company’s transactions with customers.