New Delhi, Dec 20 (Agency) The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 20 lakh on Manappuram Finance Limited for non-compliance with certain provisions of “Reserve Bank of India KYC Direction, 2016” issued by it. 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, the RBI said in a statement.
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 as it failed to undertake verification of PAN of customers from verification facility of the issuing authority at the time of customer acceptance; and It allotted multiple identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer. 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 company. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.