Case Brief
What Happened
By an order dated April 21, 2026, RBI imposed a monetary penalty of ₹80,000 on Muthoot Housing Finance Company Limited. The penalty was imposed under Section 52A of the National Housing Bank Act, 1987 after a statutory inspection by the National Housing Bank and subsequent supervisory findings identified non-compliance with RBI directions on Fair Practice Code. RBI found that the company failed to disclose the approach for gradation of risk and the rationale for charging different rates of interest to different categories of borrowers in application forms and sanction letters.