RBI Penalizes Manappuram Finance for Non-Compliance

Mumbai, Mar 13 (PTI) The Reserve Bank of India has imposed a penalty of Rs 2.70 lakh on Manappuram Finance for deficiencies in certain regulatory compliance.

Based on the supervisory findings of non-compliance with RBI directions and related correspondence, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, an RBI statement said.


After considering the company's reply to the notice and oral submissions, RBI said it found that Manappuram Finance had paid the entire variable pay upfront to certain key managerial personnel, without any deferment.

It, however added that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.

Further, imposition of the monetary penalty is without prejudice to any other action that may be initiated by RBI against the company, the central bank said.