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RBI13 Aug 2026press-releasePrepared by Complied AI

Monetary Penalty on Muthoot MCred Limited

RBI press-release 2026-2027/895 · 13 Aug 2026

Official title

RBI imposes monetary penalty on Muthoot MCred Limited

Official record

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Summary

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What changed

The Reserve Bank of India imposes a monetary penalty of ₹3.10 lakh on Muthoot MCred Limited. The company failed to comply with RBI directions on Asset Classification. The company upgraded loan accounts from non-performing assets to standard status. It performed this upgrade without the repayment of all interest and principal arrears. The RBI conducted a statutory inspection of the company financial position as of March 31, 2025. The RBI issued a notice to the company to show cause for the non-compliance. The RBI considered the company reply and oral submissions before it imposed the penalty. This action does not affect the validity of any customer agreements.

Who is affected
  • Muthoot MCred Limited
Key dates
  • Date of order — 13 Aug 2026
  • Reference date for financial position inspection — 30 Mar 2025
Thresholds
  • Monetary penalty amount
Consequences
  • Monetary penalty

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Source details

Source
Reserve Bank of India
Type
press-release
Published by source
13 Aug 2026
Document number
2026-2027/895
Issuing division
Department of Communication
Coverage area
banking

Document text

Prepared for reading; wording retained from the source.

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August 14, 2026

RBI imposes monetary penalty on Muthoot MCred Limited

The Reserve Bank of India (RBI) has, by an order dated August 14, 2026, imposed a monetary penalty of ₹3.10 lakh (Rupees Three Lakh Ten Thousand only) on Muthoot MCred Limited (Formerly Known as Muthoottu Mini Financiers Limited) (the company) for non-compliance with certain provisions of the directions issued by RBI on ‘Asset Classification’. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non- compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:

The company upgraded certain loan accounts which were ‘non-performing assets’ as ‘Standard’, without repayment of entire arrears of interest and principal pertaining to all the credit facilities.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

(Brij Raj) Press Release: 2026-2027/895 Chief General Manager ᮧेस ᮧकाशनी PRESS RELEASE

भारतीय ᳯरज़वर् बᱹक

RESERVE BANK OF INDIA

वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502

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