The Reserve Bank of India (RBI) has imposed a penalty of Rs 10 lakh on Muthoot Finance in Ernakulam. The fine has been imposed for non-compliance with the guidelines on loan-to-value ratio (LVR) and copy of PAN of the borrower for loans above Rs 5 lakh in a loan against gold.
The central bank has also imposed a fine of Rs 5 lakh on Mannapuram Finance, Trichur. The fine has been imposed for non-compliance with the guidelines for verification of ownership of gold jewelery. Regarding Muthoot Finance, the Reserve Bank said that as of March 31, 2018 and March 31, 2019, the company's financial position investigation revealed violations of the guidelines.