RBI imposes penalty on Muthoot Finance, Manappuram Finance

TIL Desk/Business/Mumbai/ The RBI on Thursday said it has imposed a penalty of Rs 10 lakh on Muthoot Finance, Ernakulam, for non-compliance with directions on maintaining loan to value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans of over Rs 5 lakh.

The central bank has also imposed a penalty of Rs 5 lakh on Manappuram Finance, Thrissur for non-compliance with directions on verification of ownership of gold jewellery.

Regarding Muthoot Finance, the central bank said the statutory inspection of the company with reference to its financial position as on March 31, 2018 and March 31, 2019, revealed non-compliance with the directions issued by it.

A notice was issued to the company advising it to “show cause as to why penalty should not be imposed for failure to comply” with the directions issued by the Reserve Bank of India (RBI).