Muthoot Finance penalised for non-compliance of KYC norms

‘Allotted more Unique Customer Identification Code for individual customers’

MUMBAI: The Reserve Bank of India (RBI) has, imposed a monetary penalty of Rs1.9 lakh on Muthoot Finance Ltd for non-compliance with certain provision of Know Your Customer (KYC) Directions 2016, issued by RBI.

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2022.

RBI explained that based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

“After considering the company’s reply to the notice, oral submissions made by it during the personal hearing, RBI found that the charge of allotting more than one Unique Customer Identification Code (UCIC) to its individual customers was sustained, warranting imposition of monetary penalty,” the RBI statement added..