Muthoot Housing Finance Company Limited

RBI imposed a monetary penalty of ₹80,000 on Muthoot Housing Finance Company Limited for non-compliance with Fair Practice Code directions. The issue related to inadequate disclosure of risk gradation and interest-rate rationale in borrower application and sanction documents.

The company must absorb the monetary penalty; the order does not invalidate any customer transaction or agreement. No operational restriction is imposed by this release, but RBI retains the ability to initiate further action based on the same compliance deficiencies.

• Section 52A of the National Housing Bank Act, 1987

RBI imposed a ₹5 lakh penalty on Muthoot Housing Finance Company Limited for a governance-related non-compliance. The violation concerned a management change made without prior RBI approval.

The company must bear the monetary penalty, and the finding highlights a governance compliance lapse. RBI has also clarified that the penalty is without prejudice to any other action that may be initiated, so further supervisory or enforcement steps remain possible.

• section 52A of the National Housing Bank Act, 1987
• Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021