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Informist, Friday, Apr. 25, 2025

MUMBAI – The Reserve Bank of India has imposed a monetary penalty of INR 7.13 million on Mahindra & Mahindra Financial Services Ltd. for violating several guidelines issued by the central bank. The non-compliances were detected following a statutory inspection of the company by RBI with reference to its financial position as on Mar. 31, 2023. The central bank then issued a show cause notice to the company.

The central bank found that the company did not disclose the processing fees and other charges in certain loan application forms, it did not furnish copies of loan agreements and did not convey details of the loans in the sanction letters to certain borrowers, and it did not give a final chance to certain borrowers to repay the loans before the sale or auction of vehicles. The company also allotted multiple customer identification codes to certain customers, instead of a unique customer identification code for each individual customer.

After considering the company's reply to the notice, the RBI imposed the monetary penalty. On the National Stock Exchange, shares of M&M Financial Services closed 1.5% lower at INR 264.60 on Friday.  End

Reported by Kshipra Petkar

Edited by Ashish Shirke

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