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Mumbai:The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹17,63,965 on Manappuram Finance Limited for non-compliance with certain provisions of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs) dated October 11, 2017 (updated February 28, 2020) and the Master Direction – Know Your Customer (KYC) dated February 25, 2016 (updated April 20, 2020).
The penalty has been imposed under the powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. RBI stated that the action is based on deficiencies in regulatory compliance and does not pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
The entity was found to be non-compliant with RBI directions relating to KYC and small PPI requirements. A notice was issued to Manappuram Finance advising it to show cause why a penalty should not be imposed. After considering the entity’s response and conducting a personal hearing, RBI concluded that the charges of non-compliance were substantiated and warranted the imposition of the monetary penalty.
[RBI]