 "RBI imposes penalty of Rs 5 lakh on Muthoottu Mini Financiers")
The Reserve Bank of India (RBI) has imposed a penalty of Rs 5 lakh on Muthoottu Mini Financiers for violation of various directions and orders issued by the central bank from time to time. An inspection of the company revealed several regulatory violations relating to the guidelines on loan-to-value ratio pertaining to gold loans, issuance and renewal of non-convertible debentures (NCDs), loans against NCDs, adherence to the fair practices code and disclosures in the balance sheet.
The company was issued a show cause notice on July 25, 2014 for imposition of penalty. The company’s response to that was not found to be satisfactory.
The company was further accorded a personal hearing by RBI. After considering the facts of the case and the company’s reply, RBI came to the conclusion that the violations were of serious nature.
The company was issued a show cause notice on July 25, 2014 for imposition of penalty. The company’s response to that was not found to be satisfactory.
The company was further accorded a personal hearing by RBI. After considering the facts of the case and the company’s reply, RBI came to the conclusion that the violations were of serious nature.
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