Case Brief
By an order dated August 14, 2026, RBI imposed a monetary penalty of ₹3.10 lakh on Muthoot MCred Limited (formerly Muthoottu Mini Financiers Limited) for non-compliance with RBI directions on Asset Classification. The action followed a statutory inspection and a show-cause process, after which RBI found that the company had upgraded certain loan accounts classified as non-performing assets to Standard without repayment of the entire arrears of interest and principal across all credit facilities. The penalty was imposed under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934.
Action Snapshot
- Primary Impact
- Fine: Rs 3.10 L
- Entity Type
- NBFC
- Action Type
- Monetary penalty