The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 6.77 crore on Mahindra & Mahindra Financial Services (Mahindra Finance), Mumbai for non-compliance with the ‘Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’ issued by RBI. This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58 B of the Reserve Bank of India Act, 1934.
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.
Mahindra Finance is one of India’s leading non-banking finance companies.
