INR 5 lacs monetary penalty
RBI imposes Monetary Penalty of INR 5
lacs on M/s Muthoottu Mini Financiers
Pvt Ltd.
The penalty is for violation of
various directions/orders issued by Reserve Bank of India from time to time.
Background
An inspection of
the company under section 45N of Reserve Bank of India Act, 1934 (the RBI Act,
1934) with reference to its financial position as on March 31, 2013 was
conducted during December, 2013.
It was observed
that several regulatory violations were committed by the company relating to
the : -
- · guidelines on Loan to Value (LTV) ratio pertaining to gold loans,
- · issuance and renewal of Non-Convertible Debentures (NCDs),
- · loans against NCDs,
- · adherence to Fair Practices Code (FPC),
- · disclosures in the balance sheet etc.
After
considering the facts of the case and the company’s reply, as also, personal
submissions made during the hearing, RBI came to the conclusion that the
violations as observed during inspection were of serious nature and were
substantiated which warranted imposition of monetary penalty on the company.
Accordingly,
a penalty of INR 5 lakh was imposed on the company, by Reserve Bank of India.
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