Recorded RBI impact
Fine: Rs 3.10 L
Monetary penalty · Fresh imposition
Published by RBI
28 Nov 2025
Case Brief
RBI, by order dated November 25, 2025, imposed a monetary penalty of ₹3.10 lakh on Mannakrishna Investments Private Limited. The penalty was for non-compliance with the Master Direction – RBI (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023, specifically in relation to governance issues. RBI found that the company had failed to obtain prior written permission before appointing a director, which resulted in a change in management because more than 30% of its directors (excluding independent directors) changed. The action followed a statutory inspection, a show-cause notice, and consideration of the company’s reply and oral submissions. RBI stated the penalty was without prejudice to any other action that may be initiated.
Why RBI Acted
RBI imposed a monetary penalty for non-compliance with provisions of the Master Direction – RBI (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 relating to governance issues. The sustained charge was that the company appointed a director without prior written permission of RBI, leading to a change in management because more than 30% of its directors (excluding independent directors) changed. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934, after inspection, show-cause notice, reply, and oral hearing.
Operating Impact
The company must absorb the monetary penalty and remain compliant with RBI governance requirements. RBI indicated the penalty does not validate any transaction or agreement with customers and may pursue additional action if warranted, but no operational restriction was imposed in this release.
Regulatory Basis
- clause (b) of sub-section (1) of Section 58G
- clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934
- Master Direction – Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023
Action Facts
- Primary Impact
- Fine: Rs 3.10 L
- Order Date
- 25 Nov 2025
- Effective From
- 25 Nov 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC