Penalty on Indian Bank – ₹1.61 Crore:
- The Reserve Bank of India (RBI) fined Indian Bank ₹1.61 crore for:
- Failing to benchmark interest rates correctly on certain floating rate retail and MSME loans.
- Taking collateral on small-value Kisan Credit Card (KCC) loans, which violates RBI norms.
Penalty on Mahindra & Mahindra Finance – ₹71.3 Lakh:
- The RBI imposed a ₹71.3 lakh penalty on Mahindra & Mahindra Financial Services for:
- Non-disclosure of processing fees and charges to some loan customers.
- Auctioning vehicles without giving some borrowers a prior opportunity to repay, breaching fair lending practices.
RBI’s Objective
- These actions highlight the RBI’s commitment to ensuring:
- Transparent loan pricing
- Fair treatment of borrowers
- Strict adherence to regulatory frameworks in both banking and NBFC sectors
TET
