The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 17,63,965 on Manappuram Finance Limited (the entity) for non-compliance with certain provisions Prepaid Payment Instruments and Know Your Customer (KYC) rules.
The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
Background
It was observed that the Manappuram Finance was non-compliant with the directions issued by RBI on KYC and small PPI requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the entity’s response and giving it a personal hearing, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
