Muthoot Finance Limited

RBI imposed a monetary penalty of Rs 5.80 lakh on Muthoot Finance Limited for KYC-direction non-compliance. The issues related to risk categorisation review and suspicious transaction reporting controls.

Muthoot Finance Limited must absorb the penalty and address the compliance gaps identified by RBI, particularly around KYC risk categorisation reviews and suspicious transaction monitoring/reporting. The order does not pronounce on customer transactions, but RBI may initiate further action if warranted.

• Section 58G(1)(b) of the Reserve Bank of India Act, 1934
• Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
• Reserve Bank of India Know Your Customer (KYC) Directions

RBI imposed a ₹1.9 lakh penalty on Muthoot Finance Limited for KYC non-compliance. The regulator said the company had allotted more than one UCIC to certain individual customers.

Muthoot Finance Limited must absorb the monetary penalty and continue complying with RBI’s KYC requirements. The order does not itself impose an operational ban, but RBI has reserved the right to initiate any further action if warranted. Customer-facing compliance systems and UCIC handling practices are the main areas implicated.

• clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934
• Know Your Customer (KYC) Directions, 2016

RBI imposed a ₹10 lakh penalty on Muthoot Finance Limited for non-compliance with directions on gold loan LTV limits and PAN documentation. The action followed a statutory inspection and subsequent show-cause proceedings.

Muthoot Finance Limited must absorb the monetary penalty and ensure future compliance with RBI’s gold-loan directions, including LTV maintenance and PAN collection requirements. The release does not describe any business restriction or licence action, so the forward-looking impact is limited to compliance expectations and the penalty payment.

• clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934