Tuesday, 24 December 2024

RBI penalty on Manappuram Finance

 The Reserve Bank of India (RBI) has, by an order dated December 16, 2024, imposed a monetary penalty of ₹20,00,000/- (Rupees Twenty Lakh only) on Manappuram Finance Limited (the company) for non-compliance with certain provisions of “Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016” issued by RBI. 

The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

After considering the company’s reply to the notice and oral submissions made by it during the personal hearing, RBI found that the following charges against the company were sustained, warranting imposition of monetary penalty:

  1. It failed to undertake verification of PAN of customers from verification facility of the issuing authority at the time of customer acceptance; and

  2. It allotted multiple identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer.

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A Man Alone

This post is written in Aari, a  South Omotic language, spoken in the North Omo zone of the Southern Nations, Nationalities, and Peoples...