Case Brief
What Happened
RBI, by order dated June 12, 2023, imposed a monetary penalty of ₹20.00 lakh on Manappuram Finance Limited, Thrissur, under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934. The action followed a statutory inspection for the financial position as on March 31, 2021, which found that the company had not classified certain gold loan accounts overdue by more than 90 days as NPAs and had not ensured the mandated loan-to-value ratio in some gold loan accounts during FY 2020-21. RBI stated that the penalty was for regulatory non-compliance and did not pronounce on the validity of transactions or agreements with customers.