{"id":331077,"date":"2024-09-18T18:00:06","date_gmt":"2024-09-18T12:30:06","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=331077"},"modified":"2024-09-18T18:04:04","modified_gmt":"2024-09-18T12:34:04","slug":"rbi-imposes-penalty-amounting-lakh-muthoot-vehicle-asset-finance-ltd-failing-comply-with-provisions-rbi-directions-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/09\/18\/rbi-imposes-penalty-amounting-lakh-muthoot-vehicle-asset-finance-ltd-failing-comply-with-provisions-rbi-directions-legal-news\/","title":{"rendered":"RBI imposes penalty of Rs. 7.9 lakh on Muthoot Vehicle & Asset Finance Ltd. for non-compliance with Liquidity Risk Management Framework and RBI Directions for NBFCs"},"content":{"rendered":"
\n

By an order dated 11-09-2024, the Reserve Bank of India (‘RBI’) imposed a monetary penalty of Rs. 7,90,000\/- on Muthoot Vehicle & Asset Finance Ltd. (‘MVAFL’) for non-compliance with certain provisions of RBI directions on ‘Liquidity Risk Management Framework for Non-Banking Financial Companies and Core Investment Companies<\/a>’ and ‘Non-Banking Financial Company — Systematically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016<\/a>’.<\/p>\n

Background<\/p>\n

A statutory inspection regarding the final position of MVAFL was conducted on 31-03-2022 based on the supervisory findings of which, a show cause notice was issued to MVAFL as to why a penalty should not be imposed on it.<\/p>\n

After considering MVAFL’s reply, RBI found that the following charges against the company were sustained:<\/p>\n

    \n
  1. \n

    MVAFL did not disclose the information regarding Liquidity Coverage Ratio on its website;<\/p>\n<\/li>\n

  2. \n

    MVAFL did not submit data regarding its gold loan customers to the four Credit Information Companies;<\/p>\n<\/li>\n

  3. \n

    MVAFL did not convey the amount of loan sanctioned along with the terms and conditions in writing in the vernacular language as understood by the vehicle loan borrowers.<\/p>\n<\/li>\n<\/ol>\n

    RBI further clarified that the action taken was based on deficiencies in regulatory compliance and was not related to any transaction or agreement entered into by MVAFL with its customers.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Apart from failing to disclose information regarding LCR and conveying the loan amounts sanctioned, MVAFL also failed to submit data of gold loan customers.<\/p>\n","protected":false},"author":67011,"featured_media":323058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[73250,73253,73251,34616,73249,73252,2611,2732],"class_list":["post-331077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-asset-finance-ltd","tag-deposit-taking-company","tag-liquidity-risk-management-framework","tag-monetary-penalty","tag-muthoot-vehicle","tag-non-deposit-taking-company","tag-RBI","tag-Reserve_Bank_of_India"],"yoast_head":"\nRBI imposes penalty of Rs. 7.9 lakh on Muthoot Vehicle & Asset Finance Ltd. for non-compliance with Liquidity Risk Management 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Ltd.","author":"Kriti","date":"April 7, 2023","format":false,"excerpt":"On 6-4-2023, the Reserve Bank of India (\u2018RBI\u2019) imposed monetary penalty of Rs. 6.77 crores on Mahindra & Mahindra Financial Services Ltd., Mumbai for non-compliance with the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. Background: RBI conducted a statutory inspection\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"RBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-498.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-498.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-498.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-498.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":225081,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/03\/penalty-imposed-on-fortune-integrated-assets-finance-ltd-for-non-compliance-of-monitoring-of-frauds-in-nbfcs-reserve-bank-directions-2016\/","url_meta":{"origin":331077,"position":3},"title":"Penalty on — Fortune Integrated Assets Finance Ltd. for non-compliance of– Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016","author":"Bhumika Indulia","date":"February 3, 2020","format":false,"excerpt":"The Reserve Bank of India (RBI) has imposed, by an order dated January 31, 2020, a monetary penalty of Rs 2 lakh on Fortune Integrated Assets Finance Ltd., Mumbai, for non-compliance with directions issued by RBI on \u2018Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016\u2019. The penalty has been\u2026","rel":"","context":"In "Hot Off The Press"","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221562,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/30\/rbi-imposes-monetary-penalty-on-bandhan-bank-janata-sahakari-bank-ltd-and-jalgaon-peoples-co-operative-bank-ltd\/","url_meta":{"origin":331077,"position":4},"title":"RBI imposes monetary penalty on Bandhan Bank, Janata Sahakari Bank Ltd. and Jalgaon Peoples Co-operative Bank Ltd.","author":"Bhumika Indulia","date":"October 30, 2019","format":false,"excerpt":"Bandhan Bank Limited he Reserve Bank of India (RBI) has, by an order dated October 29, 2019, imposed a monetary penalty of Rs One crore on Bandhan Bank Limited (the bank) for non-compliance with the guidelines on promoter holding contained in \u2018Guidelines for Licensing of New Banks in Private Sector\u2019\u2026","rel":"","context":"In "Business News"","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":330933,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/09\/17\/rbi-imposes-penalty-10-4-lakhs-hp-financial-services-failing-to-comply-rbi-directions-kyc-nbfc-it-framework-nbfc-sector\/","url_meta":{"origin":331077,"position":5},"title":"RBI imposes penalty of Rs. 10.4 lakhs on HP Financial Services for failing to adhere to its KYC, NBFC, and IT framework regulations for the non-banking financial sector","author":"Editor","date":"September 17, 2024","format":false,"excerpt":"HP Financial Services not only failed to establish a periodic review of risk categorization of accounts but also failed to form an IT Strategy Committee as well as an IT Steering Committee.","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Reserve Bank of India","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/05\/Reserve-Bank-of-India.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/331077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=331077"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/331077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/323058"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=331077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=331077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=331077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}