Case Brief
What Happened
By an order dated October 31, 2023, RBI imposed a monetary penalty on Manappuram Finance Limited, Thrissur, for non-compliance with certain provisions of the RBI’s Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. The inspection found that the company failed to comply with RBI directions on payment to certain borrowers of surplus amounts realised by auction of gold articles pledged by those borrowers during the period April 1, 2021 to September 30, 2022. RBI issued a show-cause notice, considered the company’s reply and oral submissions, and then concluded that the charge was substantiated, warranting the penalty under the RBI Act, 1934.