Mumbai: The Reserve Bank of India (RBI) has imposed a fine on a Kerala based Non Banking Financial Company (NBFC). The apex bank imposed fine of Rs 20 lakh on Manappuram Finance for non-compliance with certain provisions of NBFC. Manappuram Finance has not classify certain gold loan accounts with overdues of more than 90 days as Non-Performing Assets (NPAs).
‘The Reserve Bank of India (RBI) has, by an order dated June 12, 2023, imposed a monetary penalty of Rs 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. This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 58G (1) (b) read with section 58B (5) (aa) of the Reserve Bank of India Act, 1934. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers, ‘ RBI said in a statement.
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In November 2020, RBI had imposed Rs 5 lakh penalty on Manappuram Finance Limited for non-compliance with directions issued by RBI on verification of ownership of gold jewellery, contained in Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
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