RBI issues fines to HP, Muthoot Vehicle & Asset Finance & SMFG India Credit
Recently, the Reserve Bank of India imposed monetary penalties on three companies for non-compliance between September 3 and September 11, 2024. Hewlett Packard Financial Services (India) Pvt Ltd was fined Rs 10.4 lakh during the probe as RBI’s Know Your Customer (KYC ) guidelines in the survey. The penalty stems from a statutory error in the company’s financial statements from March 2022 onwards.
Similarly, SMFG India Credit Company Ltd (earlier known as Fullerton India Credit Company) faced a penalty of ₹23.1 lakh for non-compliance with RBI’s information technology (IT) and cybersecurity guidelines
Lastly, Muthoot Vehicle & Asset Finance Limited was fined ₹7.9 lakh for non-compliance with RBI’s Liquidity Risk Management Framework. The company failed to display its loan repayment ratio (LCR) on its website, failed to submit required information to credit reporting agencies, and failed to provide loan approval letters to borrowers in the official language in
The RBI clarified that these penalties are for compliance and not decisions on the validity of any transactions or contracts entered into by the companies .
