Reserve Bank of India Imposes Monetary Penalty on Manappuram Finance Limited
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 17,63,965 on Manappuram Finance Limited. RBI said the company had failed to comply with certain provisions of the Master Direction on Issuance and Operation of Prepaid Payment Instruments and the Master Direction on Know Your Customer (KYC). The penalty was imposed under Section 30 of the Payment and Settlement Systems Act, 2007 after a show-cause notice, response, and personal hearing.
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 after finding that Manappuram Finance Limited was non-compliant with the Master Direction on Issuance and Operation of Prepaid Payment Instruments dated October 11, 2017 (updated February 28, 2020) and the Master Direction on Know Your Customer (KYC) dated February 25, 2016 (updated April 20, 2020). RBI noted deficiencies in regulatory compliance and concluded the charge of non-compliance with RBI directions was substantiated after issuing a show-cause notice and hearing the entity.
Severity Assessment
The action is a monetary penalty of Rs 17,63,965, which falls in the 10 lakh to 20 lakh band, giving severity 3.
Manappuram Finance Limited must absorb the penalty and ensure future compliance with RBI’s KYC and PPI requirements. The release does not mention any operational restriction, but it signals continued regulatory scrutiny of the entity’s compliance processes.
Published as Manappuram Finance Limited
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Manappuram Finance Limited
Monetary penalty · Fresh imposition
Manappuram Finance Limited
Monetary penalty · Fresh imposition
Manappuram Finance Limited
Monetary penalty · Fresh imposition
Manappuram Finance Limited
Monetary penalty · Fresh imposition
Manappuram Finance Limited
Monetary penalty · Fresh imposition
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