Muthoot Finance, an Upper Layer NBFC, expects to attain more operational flexibility under the new scale based regulatory framework of RBI

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Muthoot Finance
Muthoot Finance, an Upper Layer NBFC, expects to attain more operational flexibility under the new scale based regulatory framework of RBI
  • Post classification of 16 leading NBFCs under Upper Layer category by RBI, Muthoot Finance is the only Kerala-based NBFC to be part of the Upper Layer classification
  • The Government and the RBI has permitted Muthoot Finance to perform authentication under the Aadhaar Act to enable faster biometric KYC for its customers 
  • Muthoot Finance continues to focus on offering digital flexibility to its new-age customers and collectively, the company has managed to transfer 40% of its gold loan transactions to online
  • The NBFC has clocked over 95 Lac BBPS digital transactions in volume & Rs 8000 crore in value till date

December 16, 2022, India: Muthoot Finance, India’s largest gold loan focused NBFC company by virtue of its classification as an Upper Layer NBFC, expects to attain more operational flexibility under the revised scale based regulatory framework of RBI. In the recent list announced by the RBI, Muthoot Finance was included among the 16 Upper Layer NBFCs by RBI under scale based Regulatory Framework for NBFCs to elevate its status in line with several other public sector NBFCs. Through this classification, the company has become the only Kerala based NBFC to enter into the Upper Layer classification by the RBI. 

The Government and the RBI has also permitted Muthoot Finance along with 42 other entities to perform authentication under the Aadhaar Act. This further reflects the trust bestowed on Muthoot Finance by the regulatory authorities. This will enable faster biometric KYC for our customers. Once the customer arrives at any of our 4500+ branches, the customer can complete KYC process through biometric aadhaar based authentication.

Along with complying with the RBI regulations, Muthoot Finance has always prioritized superior customer experience by launching various digital initiatives. As part of its digital initiatives, the company has managed to clock over 95 Lac digital transactions in volume and Rs. 8000 crore in terms of value so far.

With the acceleration in digitization in the financial sector, Muthoot Finance has always been in the forefront to become a digital-first NBFC to offer ease and convenience to its customers. These digital transactions include the company’s gold loan disbursals and repayments which has been facilitated through the integrated iMuthoot App. The iMuthoot application has witnessed more than 1 million downloads as of end of November 2022 and the average number of digital transactions stood at 30,000 in November 2022. The average value collected per day through digital transactions stood at Rs.20 crore. Collectively, the company has managed to transfer 40 percent of its gold loan transactions into online. 

Speaking on the recognition of RBI Upper Layer classification, Mr. George M George, Deputy Managing Director, Muthoot Finance Ltd. said, “The inclusion in the Upper Layer list by the RBI is expected to be a huge value recognition for the company and our stakeholders. We consider that this acknowledgement will enable us to positively contribute to the economic growth of the nation. We are expecting the classification to bring operational flexibility. We are further optimistic to leverage the massive opportunity in the gold loan industry.”

Speaking on the digitization drive, Mr. K.R. Bijimon, Executive Director & COO, Muthoot Finance Ltd. said, “We are happy to observe that there is commendable growth in the number of digital transactions. We have always tried to leverage and adopt best practices in digital technology keeping the customer interest at the forefront. We have set up a strategic IT division named Emsyne, which engages in developing and deploying new trends in digital technology. We have seen the pandemic forcing us to make rapid strides in technology, and we had anticipated the disruption that digitization would bring in our consumer preferences, and also the banking sector in particular. As such, the company has managed to transfer 40% of its gold loan transactions to online and we will continue to further strengthen our digital strategy.”