BANKING & FINANCE
Banking Affairs
RBI Penalizes Mahindra & Mahindra Financial Services for Compliance Lapses
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹11.50 lakh on Mahindra & Mahindra Financial Services Ltd (MMFSL), an NBFC.
The penalty was levied due to non-compliance found during the annual inspection concerning the company's financial position as of March 31, 2025.
Major irregularities identified include improper handling of foreclosure fees and a failure to escalate customer complaints to the Internal Ombudsman within timelines.
This regulatory action was taken under specific sections of the RBI Act, 1934, specifically Section 58G(1)(b) and Section 58B(5)(aa).
The penalty was levied due to non-compliance found during the annual inspection concerning the company's financial position as of March 31, 2025.
Major irregularities identified include improper handling of foreclosure fees and a failure to escalate customer complaints to the Internal Ombudsman within timelines.
This regulatory action was taken under specific sections of the RBI Act, 1934, specifically Section 58G(1)(b) and Section 58B(5)(aa).
Key Facts / Static GK
Entity Type: Non-Banking Financial Company (NBFC)
Governing Act: RBI Act, 1934
Internal Ombudsman: A mechanism for grievance redressal within financial institutions
Governing Act: RBI Act, 1934
Internal Ombudsman: A mechanism for grievance redressal within financial institutions
Practice Quiz — 4 March 2026
Q1. Which of the following benefits is primarily associated with a CPSE being upgraded from Schedule ‘B’ to Schedule ‘A’ status?
Answer: (B) Enhanced financial and operational autonomy for investment decisions — Upgrading a CPSE to Schedule 'A' status provides the entity with greater financial and operational autonomy, allowing for faster execution of government programs and more empowered decision-making regarding investments.
Q2. What is the total number of official members in the Hindi Advisory Committee of the Ministry of Chemicals and Fertilizers as per the recent announcement?
Answer: (C) 37 members — The composition of the Hindi Advisory Committee includes 37 official members and 15 nominated members, headed by the Union Minister.
Q3. Where was the commissioning ceremony of INS Anjadip, the 3rd ASW-SWC vessel, held?
Answer: (C) Chennai Port, Tamil Nadu — INS Anjadip, nicknamed Dolphin Hunter, was commissioned by the Indian Navy at Chennai Port, Tamil Nadu.
Q4. Which of the following festivals announced by MoTA is correctly matched with its primary focus area?
Answer: (D) Living Roots Festival — Culture & Music — According to the MoTA announcement, the Living Roots Festival (LRF) focuses on Culture & Music, while Tribes Art Fest focuses on Arts and Bharat Tribes Fest on Commerce.
Q5. National Waterway-2 (NW-2), where new infrastructure projects were recently inaugurated, corresponds to which river stretch?
Answer: (B) Brahmaputra River (Dhubri to Sadiya) — National Waterway-2 (NW-2) is the designated waterway for the Brahmaputra River, spanning the stretch between Dhubri and Sadiya in Assam.
Keep Learning with PrepZen
Get daily current affairs, live mock tests, mistake bank, vocab builder & more — all free on your phone.