RBI imposes monetary penalty on Muthoot FinCorp Limited
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The Reserve Bank of India (RBI) has fined Muthoot FinCorp Limited ₹2.70 lakh for not following RBI rules related to the Internal Ombudsman. The order was issued on September 24, 2025.
RBI inspected the company’s financial position as on March 31, 2024. During this inspection, RBI found that the company had not followed certain directions. A notice was sent to the company asking why a penalty should not be imposed.
The company submitted a written reply, additional details, and also gave its side during a personal hearing. After reviewing everything, RBI confirmed that the company had failed in one key area:
- It did not set up a system where complaints, that were partly or fully rejected by the company’s grievance redressal system, would automatically be escalated to the Internal Ombudsman.
Because of this failure, RBI decided to impose the penalty.
RBI also clarified that this action is only about regulatory non-compliance. It does not question the validity of the company’s agreements or transactions with its customers. This penalty is in addition to any other action that RBI may take against the company.
