The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 2.70 lakh on Muthoot Vehicle and Asset Finance Limited for non-compliance with provisions of the RBI's Know Your Customer (KYC) Directions.

The penalty follows a statutory inspection based on the company's financial position as of March 31, 2025. After reviewing the inspection findings, the company's response, and oral submissions, the RBI found that the company had violated KYC norms.

According to the central bank, the company failed to implement a system for periodic review of the risk categorisation of customer accounts, which is required to be carried out at least once every six months.

RBI clarified that the penalty relates solely to regulatory compliance deficiencies and does not affect the validity of customer transactions or agreements. The central bank also noted that the action is without prejudice to any further regulatory measures that may be initiated against the company.