RBI imposes Rs 42.78 lakh penalty on Manappuram Finance Limited

The Reserve Bank of India has imposed a monetary penalty of Rs 42.78 lakh on Manappuram Finance Limited for non-compliance with certain provisions. A statutory inspection of the company was conducted by the RBI with reference to its financial position as on March 31, 2022.

"...examination of the Risk Assessment Report, Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, inter alia, the company’s failure to comply with the RBI’s directions on payment to certain borrowers the surplus amounts realised by auction of gold articles pledged by those borrowers during the period from April 01, 2021 to September 30, 2022," the regulator said.

Consequently, a notice was issued to the company advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the RBI directions. After considering the company’s reply to the notice, additional submissions made by it, and oral submissions made during the personal hearing, the RBI concluded that the charge of non-compliance with its directions was substantiated and warranted the imposition of a monetary penalty.