Case Brief
What Happened
By an order dated April 21, 2025, RBI imposed a monetary penalty of Rs 71.30 lakh on Mahindra & Mahindra Financial Services Limited. The action followed a statutory inspection with reference to the company’s financial position as on March 31, 2023, and subsequent supervisory findings and show-cause proceedings. RBI said the company had failed to comply with certain provisions of the NBFC Systemically Important Non-Deposit taking Company and Deposit taking Company Directions, 2016 and the RBI KYC Directions, 2016. The sustained violations related to non-disclosure of processing fees and other charges in certain loan application forms, failure to furnish copies of loan agreements and loan details in sanction letters to some borrowers, failure to provide a final opportunity to repay before sale/auction of vehicles, and allotment of multiple customer identification codes instead of a Unique Customer Identification Code for some customers.