RBI imposes monetary penalty on Muthoot Vehicle and Asset Finance Limited
Case Brief
By an order dated July 13, 2026, RBI imposed a monetary penalty of ₹2.70 lakh on Muthoot Vehicle and Asset Finance Limited. The penalty followed a statutory inspection and show-cause process, and RBI found that the company had failed to put in place a system for periodic review of risk categorisation of accounts at least once in six months, in violation of RBI’s KYC Directions issued under the RBI Act, 1934.
RBI imposed a monetary penalty under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934 after a statutory inspection of Muthoot Vehicle and Asset Finance Limited. The sustained charge was that the company did not establish a system for periodic review of the risk categorisation of accounts at least once every six months, amounting to non-compliance with the Reserve Bank of India (Know Your Customer (KYC)) Directions.
Severity Assessment
The action is a monetary penalty of ₹2.70 lakh, which falls in the >₹2 lakh and ≤₹10 lakh band, giving severity 2.
The company must bear the monetary penalty and continue complying with RBI’s KYC framework, especially the requirement to periodically review customer risk categorisation at least every six months. RBI also noted that the penalty does not preclude any other action that may be initiated later.
Published as Muthoot Vehicle and Asset Finance Limited
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