Recorded RBI impact
Fine: Rs 2.70 L
Monetary penalty · Fresh imposition
Published by RBI
26 Sept 2025
Case Brief
The Reserve Bank of India imposed a monetary penalty of ₹2.70 lakh on Muthoot FinCorp Limited by an order dated September 24, 2025. The penalty was imposed under Section 58G read with Section 58B of the RBI Act, 1934, following supervisory findings and a show-cause notice process. RBI found that the company had failed to establish a system to automatically escalate complaints that were partly or wholly rejected by its internal grievance redress mechanism to the Internal Ombudsman.
Why RBI Acted
RBI imposed a monetary penalty on Muthoot FinCorp Limited under Section 58G read with Section 58B of the RBI Act, 1934, after supervisory findings and a show-cause process. The sustained charge was non-compliance with RBI directions on Internal Ombudsman: the company failed to establish an auto-escalation system for complaints rejected in part or in full by its internal grievance redress mechanism.
Operating Impact
Muthoot FinCorp Limited must treat this as a regulatory compliance penalty and address the identified gap in its complaint-escalation framework. The action does not by itself invalidate customer transactions, but RBI noted it may initiate any other action as permitted under law.
Regulatory Basis
- Section 58G(1)(b) of the Reserve Bank of India Act, 1934
- Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Fine: Rs 2.70 L
- Order Date
- 24 Sept 2025
- Effective From
- 24 Sept 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC