By Admin 
RBI Action On Muthoot Finance: If you have also taken a gold loan or any other loan from Muthoot Finance, then this news is useful for you. The Reserve Bank of India has imposed monetary penalty on six financial companies including Muthoot Finance for not following regulatory rules. However, this action is related to the company’s regulatory lapses and will not have any direct impact on the loans, interest rates or banking services of existing customers.
How much fine was imposed on Muthoot Finance?
RBI has imposed a fine of Rs 5.80 lakh on Muthoot Finance. According to the central bank, the company did not fully comply with some provisions of the KYC Direction, 2016. This action has been taken on the basis of shortcomings revealed in the regulatory investigation.
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What was RBI’s objection?
According to RBI, Muthoot Finance had not made proper arrangements to periodically review the risk category of the accounts. Additionally, the company did not have a robust enough software system for identifying and reporting suspicious transactions. In view of these shortcomings, the Central Bank imposed a fine.
Do customers need to panic?
No, even if you have taken a loan from Muthoot Finance, you do not need to worry. RBI said that this fine is a matter related to regulatory compliance. This does not mean that there will be any impact on loans, deposits or other services of the company’s customers. The company’s services will continue as before.
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Action was taken against these companies also
Apart from Muthoot Finance, RBI has also imposed penalty on Avail Finance Services, Pan Emami Cosmed Limited, Satya Microcapital Limited, Dhani Loans and Services Limited and Muthoot Vehicle and Asset Finance Limited for different reasons. Action has been taken against these companies due to violation of regulatory standards.