Mumbai, Feb 28 (UNI) Mahindra & Mahindra Financial Services Limited received a Rs 11.50 lakh monetary penalty from the Reserve Bank of India (RBI) on Friday, following violations identified during annual inspection for FY ended March 31, 2025, the company informed the stock exchange.
The disclosure to the stock exchange by the company was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, as required for material events. The company has also uploaded this intimation on its website under the investor relations and regulatory filings section, ensuring transparency with stakeholders.
RBI took the regulatory action after identifying non-compliance with specific RBI directions.
The RBI identified specific violations related to the Fair Practices Code and Internal Ombudsman directions after issuing a show cause notice and considering the company’s replies and submissions.
The company had levied revised foreclosure charges on certain borrower accounts without incorporating suitable conditions in their loan agreements. This practice violated the Fair Practices Code requirements established by the RBI.
Two key failures were identified in the company’s complaint handling mechanism, namely escalation delays as well as communication lapses.
The company failed to escalate certain complaints that were partly or wholly rejected by its Internal Grievance Redress Mechanism to the Internal Ombudsman within the prescribed timeframe.
Also, final decisions were not communicated to complainants within the prescribed time in certain cases.
Mahindra & Mahindra Financial Services Limited stated that it has undertaken necessary corrective actions and strengthened internal controls to ensure strict compliance with all regulatory and supervisory obligations. The company stated that there is no impact on operations or other activities except for the financial impact of the monetary penalty levied.
