Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
The Reserve Bank of India has imposed a monetary penalty of INR 80,000 on Muthoot Housing Finance Company Limited for non-compliance with Fair Practice Code directions. The action followed a statutory inspection conducted by the National Housing Bank with reference to the company’s financial position as on March 31, 2025. After reviewing supervisory findings, issuing a show-cause notice, and considering the company’s response and hearing submissions, RBI confirmed that the lender failed to disclose its risk grading approach and justification for different interest rates in loan documentation, leading to regulatory action.
The Reserve Bank of India has imposed a monetary penalty of INR 80,000 on Muthoot Housing Finance Company Limited for non-compliance with certain directions under the Fair Practice Code. Advertisement
The action was taken under Section 52A of the National Housing Bank Act, 1987, following supervisory observations made after a statutory inspection conducted by the National Housing Bank based on the company’s financial position as on March 31, 2025.
Based on the inspection findings and related correspondence, the RBI had issued a show-cause notice to the company asking why a penalty should not be imposed for the identified lapses. The company submitted its written reply and also made oral submissions during a personal hearing as part of the regulatory process.
After examining the response, the RBI observed that one of the key charges remained sustained. The company was found to have failed to disclose the method used for grading risk and the justification for charging different interest rates across borrower categories. This information was not clearly provided in either the loan application forms or sanction letters, which is required under fair lending disclosure norms.
The central bank clarified that the penalty has been imposed due to deficiencies in regulatory compliance with the Fair Practice Code directions. It also noted that the action does not comment on or affect the validity of any transaction or agreement entered into by the company with its customers.
The RBI further stated that this monetary penalty is without prejudice to any other regulatory or supervisory action that may be initiated against the company in the future, depending on further assessments or compliance reviews.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
