RBI Imposes Penalties on Three NBFCs for Regulatory Violations
The Reserve Bank of India (RBI) has imposed penalties on Fusion Finance, Northern Arc Capital, and Muthoot MCred for violating various regulatory norms.
- Fusion Finance was fined ₹2.7 lakh for failing to conduct mandatory six-monthly reviews of customer risk categorisation as required under RBI’s KYC guidelines.
- Northern Arc Capital received a ₹6.2 lakh penalty for incorrect disclosure of customer complaints in its FY25 financial statements and for not automatically escalating eligible complaints to the Internal Ombudsman.
- Muthoot MCred was fined ₹3.1 lakh for incorrectly upgrading NPA loan accounts to standard accounts without full repayment of outstanding principal and interest, violating RBI’s asset classification norms.
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