Manappuram Finance Limited

RBI has imposed a monetary penalty of Rs 2.70 lakh on Manappuram Finance Limited. The action was for non-compliance with RBI’s guidelines on deferral of variable pay for key managerial personnel.

The company must absorb the monetary penalty and address the underlying compliance weakness in its compensation practices. The order does not impose an operational restriction, but RBI notes that the penalty is without prejudice to any further action it may initiate.

• section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI has imposed a ₹20 lakh penalty on Manappuram Finance Limited for KYC-related non-compliance. The issues involved PAN verification and allocation of customer identification codes.

Manappuram Finance Limited must absorb the ₹20 lakh penalty and address the identified KYC control gaps going forward. The immediate operational impact is limited to the monetary penalty, but the company is expected to strengthen PAN verification and UCIC issuance processes to avoid further regulatory action. RBI also noted that additional action may still be initiated separately.

• Section 58G(1)(b) of the Reserve Bank of India Act, 1934
• Section 58B(5)(aa) of the Reserve Bank of India Act, 1934
• Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016

RBI imposed a monetary penalty of Rs 42.78 lakh on Manappuram Finance Limited for non-compliance with its NBFC directions. The breach related to not paying borrowers surplus amounts realised from auction of pledged gold articles.

Manappuram Finance Limited must bear the monetary penalty; the order does not state any suspension or restriction on ongoing business operations. The release does not indicate direct changes for customers beyond the compliance breach already identified, but it underscores the company’s obligation to follow RBI directions on borrower payments and auction surplus handling.

• clause (b) of sub-section (1) of Section 58 G
• clause (aa) of sub-section (5) of Section 58 B of the Reserve Bank of India Act, 1934

RBI imposed a ₹20 lakh penalty on Manappuram Finance Limited for non-compliance with NBFC Directions, 2016. The violations related to NPA classification and loan-to-value compliance in certain gold loan accounts.

The company must absorb the penalty and continue complying with the NBFC Directions, 2016, especially around NPA recognition and gold-loan LTV controls. There is no stated restriction on operations, but the finding may increase supervisory scrutiny.

• section 58G (1) (b) read with section 58B (5) (aa) of the Reserve Bank of India Act, 1934

RBI imposed a monetary penalty of Rs 17,63,965 on Manappuram Finance Limited for non-compliance with KYC and PPI directions. The penalty was levied under Section 30 of the Payment and Settlement Systems Act, 2007.

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.

• Section 30 of the Payment and Settlement Systems Act, 2007

RBI imposed a ₹5 lakh monetary penalty on Manappuram Finance Limited, Thrissur. The penalty was for non-compliance with RBI directions on verifying ownership of gold jewellery.

Manappuram Finance Limited must absorb the penalty and the compliance lapse may draw greater supervisory scrutiny. The order does not invalidate any customer transactions or agreements, but it signals a requirement to strengthen adherence to RBI directions going forward.

• clause (b) of sub-section (1) of section 58 G
• clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934

RBI advised that Manappuram Finance Limited, Thrissur, is not permitted to accept or renew public deposits. It also cautioned that deposits taken through MAGRO are prohibited and at the depositor’s risk.

Manappuram Finance Limited must not accept or renew public deposits, and any such activity would expose the company and related concern MAGRO to legal consequences under the RBI Act. Depositors are warned that money placed with either entity is at their own risk. The notice is effective immediately as a regulatory prohibition; no deposit-taking activity should continue through branches, offices, or through MAGRO receipts.

• Reserve Bank of India Act, 1934
• Section 45-S of the RBI Act

This RBI action affected 2 entities. This profile is linked as primary.