RBI imposes monetary penalty of Rs 20 lakh on Mulamoottil Financiers
The monetary penalty was imposed over non-compliance with RBI norms.
November 24, 2021 / 07:23 PM IST
The Reserve Bank of India on November 24 imposed a monetary penalty of Rs 20 lakh on Kerala-based Mulamoottil Financiers Limited, for non-adherence with certain provisions of the directions issued by the RBI on classification of Non-performing Assets and and RBI Directions on Raising Money through Private Placement by NBFCs-Debentures.
The central bank conducted a statutory inspection of Mulamoottil Financiers with reference to its financial position as on March 31, 2018 and the inspection revealed non-compliance with above mentioned directions issued by RBI, it said in a press release.
Subsequently, the central bank issued a show cause notice as to why penalty should not be imposed for failure in complying with the norms issued by RBI. Upon considering the company's reply the, central bank came to the conclusion that the charges are substantiated and warranted imposition of monetary penalty.