RBI Penalty on Mahindra Finance: ₹11.50 Lakh for Rule Breaches
Why in the news
An annual inspection of the NBFC MMFSL exposed breaches of customer-protection norms, so RBI fined it.
Key facts
- Penalty: ₹11.50 lakh, February 2026.
- Inspection base: company finances at 31 March 2025 (FY25).
- Legal basis: Section 58G(1)(b) with 58B(5)(aa); these let RBI penalise NBFCs.
| Area | Lapse |
|---|---|
| Fair Practices Code | Revised foreclosure fees applied but not put in loan agreements |
| Grievance redressal | Complaints not sent to Internal Ombudsman on time; some final replies delayed |
Process
Supervisory inspection, then a show-cause notice, then the penalty after the reply was examined.
Exam angle
- Regulator: RBI; entity: NBFC.
- Related terms: Fair Practices Code, Internal Ombudsman.