New Delhi, 18 July (H.S.): The Reserve Bank of India (RBI) has imposed monetary penalties on six companies, including non-banking financial company (NBFC) Muthoot Finance, for failing to comply with regulatory guidelines. The penalties range between Rs 2.70 lakh and Rs 6.20 lakh for various regulatory deficiencies and violations.

According to a notification issued by the RBI, the central bank has imposed a penalty of Rs 5.80 lakh on Muthoot Finance. It has also levied fines of Rs 3.10 lakh each on Satya MicroCapital Limited and Pan Emami Cosmed, Rs 2.70 lakh each on Dhani Loans and Services and Muthoot Vehicle and Asset Finance, and Rs 6.20 lakh on Aye Finance Services.

The RBI said the penalty on Muthoot Finance was imposed due to the company’s failure to establish a mechanism for periodic review of risk classification of accounts. The company was also found to have not implemented a robust software system for effective identification and reporting of suspicious transactions.

The central bank stated that penalties were imposed on Aye Finance Services, Pan Emami Cosmed, Satya MicroCapital and other entities for various regulatory lapses identified during inspections.

The RBI clarified that these actions are based on deficiencies in regulatory compliance by the concerned entities and are not intended to question the validity of any transactions or agreements entered into by the companies with their customers.

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Hindusthan Samachar / Jun Sarkar