Share
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹20,00,000 on Manappuram Finance Limited for non-compliance with specific provisions of the RBI (Know Your Customer (KYC)) Directions, 2016. The penalty was levied under the powers conferred on RBI by the Reserve Bank of India Act, 1934.
The action follows a statutory inspection conducted by RBI based on the company’s financial position as of March 31, 2023. The inspection revealed lapses in regulatory compliance, prompting RBI to issue a show-cause notice to the company, allowing it to respond both in writing and during a personal hearing.
RBI found the following violations:
Failure to verify PAN details of customers using the official verification facility at the time of customer onboarding. Allotment of multiple identification codes to certain customers instead of assigning a Unique Customer Identification Code (UCIC) per customer.
The RBI clarified that this penalty addresses deficiencies in regulatory and compliance practices and does not comment on the validity of any transactions or agreements entered into by the company. The imposition of the fine is without prejudice to any other action that RBI may initiate.
The move underscores the importance of strict adherence to KYC norms and cybersecurity protocols in financial institutions to prevent fraud and ensure secure customer identification.
[RBI]