RBI Slaps Penalty Amounting to INR 5.78 Cr on Muthoot Finance, PhonePe, 4 Others for Violating Regulatory Norms
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The Reserve Bank of India has slapped a total penalty of over INR 5.78 crore on six firms for non-compliance of regulatory guidelines.
Food services company Sodexo is slapped with the highest fine of INR 2 crore, followed by financial services company PhonePe fined INR 1.39 crore. Muthoot Vehicle and Asset Finance Ltd, QwikCilver Solutions Private Ltd, Punjab National Bank Ltd (PNB) and Delhi Metro Rail Corporation Ltd (DMRC) are the other four entities to be fined for violating regulatory norms.
“In exercise of powers vested under Section 30 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India has imposed monetary penalty on the following entities for non-compliance of regulatory guidelines," RBI said in a statement.
PNB and QwikCilver will have to pay INR 1 crore each, whereas Muthoot Vehicle & Asset Finance has been fined INR 34.55 lakh, and DMRC INR 5 lakh.
In a separate announcement on 19 November, RBI said it has imposed a penalty of INR10 lakh on Muthoot Finance Limited, Ernakulam and INR 5 lakh on Manappuram Finance Limited, Thrissur for flouting regulatory norms.
In the case of Muthoot Finance, the central bank had imposed the penalty for non-compliance with directions issued by RBI on maintenance of Loan to Value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans in excess of INR 5 lakh. On the other hand, Manappuram was fined for non-compliance with directions issued by RBI on verification of ownership of gold jewellery, the central bank said.