RBI Imposes Fine Of Rs 6.77 Cr On Mahindra & Mahindra Financial Services

New Delhi
The Reserve Bank of India has imposed a fine of Rs 6.77 crore on Mahindra & Mahindra Financial Services Limited for not disclosing annualized rate of interest charged on loans to the borrowers at the time of sanction, the company announced through an exchange filing. It also added that the company had failed to give notice of change in terms and conditions to its borrowers, when it charged a higher rate of interest than what was communicated in the financial year 2018-19, 2019-20 and 2020-21.
The company said it had already taken the necessary steps for compliance with the directions from the Central bank and will be taking necessary steps to comply with the order by RBI. RBI in a release on Thursday had also fined Indian Bank with a penalty of Rs 55 lakh for contravention of certain Know Your Customer norms and the Muthoot Money Limited, Ernakulam with Rs 10.50 lakh for not adhering to the provisions related to Monitoring of Frauds in NBFCs Directions, 2016.