RBI imposes monetary penalty of Rs. 6.77 crore on Mahindra & Mahindra Financial Services Limited

The Reserve Bank of India (RBI), vide its Order dated April 5, 2023, has imposed a monetary penalty of Rs. 6.77 Crore on the Company in exercise of powers conferred under clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the RBI Act, 1934. The penalty has been imposed for non-compliance by the Company with the RBI directions on fair practices relating to disclosure of annualized rate of interest charged on loans to the borrowers at the time of sanction and failure to give notice of change in terms and conditions of loan to its borrowers, when it charged higher rate of interest than what was communicated at the time of sanction, during financial years 2018-19, 2019-20 and 2020-21. The Company has already implemented necessary steps for compliance with the RBI directions. The Company will also be taking necessary steps to comply with the said Order as directed. The Company has always endeavored to maintain the highest standards of Compliance and Culture within the organization and shall continue to do so.

Shares of Mahindra & Mahindra Financial Services Limited was last trading in BSE at Rs. 252.30 as compared to the previous close of Rs. 239.60. The total number of shares traded during the day was 356001 in over 4451 trades.

The stock hit an intraday high of Rs. 253.45 and intraday low of 236.95. The net turnover during the day was Rs. 88188701.00.

Source : Equity Bulls

Keywords

MahindraandMahindraFinancialServices INE774D01024 NBFC RBI MonetaryPenalty