RBI imposes ₹2.7 lakh penalty on Muthoot FinCorp for ombudsman non-compliance

The penalty follows a statutory inspection of the company’s financial position as of March 31, 2024. RBI found that Muthoot FinCorp had not established a system to automatically escalate complaints that were partly or wholly rejected by its internal grievance redress mechanism to the internal bmbudsman.
RBI imposes ₹2.7 lakh penalty on Muthoot FinCorp for ombudsman non-compliance
Gold ornaments are pictured inside a Muthoot Fincorp branch in Mumbai, August 21, 2019. REUTERS/Francis Mascarenhas
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Published Sep 26, 2025   |   9:26 AM GMT-04
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The Reserve Bank of India (RBI) has levied a monetary penalty of ₹2.70 lakh on Muthoot FinCorp Limited for non-compliance with its directions regarding the internal ombudsman, the central bank said in a statement dated September 26, 2025.

The penalty follows a statutory inspection of the company’s financial position as of March 31, 2024. RBI found that Muthoot FinCorp had not established a system to automatically escalate complaints that were partly or wholly rejected by its internal grievance redress mechanism to the internal ombudsman.

A show-cause notice was issued to the company, and RBI considered its written and oral submissions before finalising the penalty. The central bank clarified that the action relates solely to regulatory compliance and does not comment on the validity of any transactions or agreements between the company and its customers. RBI added that the imposition of the penalty does not preclude any further action against the company.

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