CA Sansaar
RBI Levies ₹2.70 Lakh Penalty on Manappuram Finance
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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.70 lakh on Manappuram Finance due to shortcomings in complying with certain regulatory requirements.
According to an RBI statement, the action followed supervisory findings which indicated non-adherence to specific RBI directions. Based on these observations and subsequent communication with the company, a show-cause notice was issued asking the firm to explain why a penalty should not be imposed for the violations.
After reviewing the company’s written response and oral submissions, the central bank concluded that Manappuram Finance had paid the entire variable compensation to certain key managerial personnel upfront, instead of deferring a portion of the payment as required under RBI guidelines.
According to an RBI statement, the action followed supervisory findings which indicated non-adherence to specific RBI directions. Based on these observations and subsequent communication with the company, a show-cause notice was issued asking the firm to explain why a penalty should not be imposed for the violations.
After reviewing the company’s written response and oral submissions, the central bank concluded that Manappuram Finance had paid the entire variable compensation to certain key managerial personnel upfront, instead of deferring a portion of the payment as required under RBI guidelines.
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