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The stocks of non-banking financial companies Mahindra & Mahindra Financial Services Limited and Indian Bank, included in the BSE 200 index, may see action in the next session. Actually, the Reserve Bank has imposed financial penalty on both NBFC and bank for not following the rules. The Reserve Bank has informed about imposing penalty on both of them on 25 April 2025.
Indian Bank
The Reserve Bank informed on 25 April 2025 that under an order dated 8 April 2025, a penalty of Rs 1 crore 60 lakh 40 thousand has been imposed on Indian Bank. This penalty has been imposed for not following the Reserve Bank's rules related to interest rates on advances, Kisan Credit Card Scheme and loans to the MSME sector. Apart from this, action has also been taken in the matter of not transferring the Depositor Education and Awareness Fund. In Friday's trading, the stock of Indian Bank closed at 569.3 with a decline of about one percent. M&M Financial The Reserve Bank has informed that a penalty of Rs 71.3 lakh has been imposed on Mahindra & Mahindra Financial Services for not fulfilling some rules. This action has been taken in cases of non-fulfillment of KYC norms, non-disclosure of processing fees and other charges in some loan applications, non-provision of copy of loan agreement in some loan related cases or non-disclosure of complete information in sanction letter and in some cases sale or auction of vehicle without giving last chance to settle the loan.
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