RBI imposed Monetary Penalty on Manappuram Finance Limited:

RBI imposed Monetary Penalty on Manappuram Finance Limited The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20.00 lakh (Rupees Twenty lakh only) on Manappuram Finance Limited, Thrissur (the company) for non-compliance with certain provisions of the “Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016”, by an order dated June 12, 2023. This penalty was imposed by the RBI in accordance with the requirements of Sections 58G (1) (b) and 58B (5) (aa) of the Reserve Bank of India Act, 1934. This action is based on regulatory compliance problems and is not intended to rule on the legitimacy of any transaction or agreement entered into by the firm with its consumers. The RBI conducted a statutory inspection of the company with reference to its financial position as of March 31, 2021, and examination of the Risk Assessment Report, Inspection Report, supervisory letter, and all related correspondence pertaining to the same revealed, inter alia, non-compliance with the aforementioned directions by the company to the extent (i) it did not classify certain gold loan accounts with overdues of more than 90 days as Non-Performing Assets (NPAs). In addition, a notice was given to the firm instructing it to show cause why a penalty should not be levied on it for failing to comply with the RBI orders, as indicated therein. After reviewing the company's response to the notice, as well as additional submissions made by it and oral submissions made during the personal hearing, the RBI concluded that the charge of non-compliance with the aforementioned RBI directions was substantiated and warranted imposition of monetary penalty.