The Reserve Financial institution of India (RBI) has imposed financial penalty of ₹17 lakh on Manappuram Finance Ltd (the entity) for violating its instructions on KYC norms.
The penalty has been imposed in train of powers vested in RBI below Part 30 of the Cost and Settlement Methods Act, 2007, it mentioned in an announcement.
This motion relies on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the entity with its prospects.
The RBI had despatched discover to the corporate advising it to indicate trigger as to why penalty shouldn’t be imposed for non-compliance with the instructions.
“It was noticed that the entity was non-compliant with the instructions issued by RBI on KYC and small PPI necessities. Accordingly, discover was issued to the entity advising it to indicate trigger as to why penalty shouldn’t be imposed for non-compliance with the instructions,” RBI mentioned.
After contemplating the entity’s response and giving it a private listening to, RBI concluded that the non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty.
Supply: Live Mint