The Reserve Bank of India (RBI) said it has imposed a monetary penalty of Rs 17.63 lakh on Manappuram Finance Limited for non-compliance of norms related to Know Your Customer (KYC) and Prepaid Payment Instruments (PPIs).
KEY POINTS:
- The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 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 as on February 28, 2020) and the Master Direction – Know Your Customer (KYC) Direction dated February 25, 2016 (as updated on April 20, 2020).
- This action is based on regulatory compliance issues and is not meant to be a judgement on the validity of any transaction or agreement the organisation has with its consumers.
- The entity was found to be in violation of RBI instructions on KYC and minor PPI standards. As a result, the entity was given notice to show cause why a penalty should not be applied for failing to follow the orders.
RBI found that the aforementioned accusation of non-compliance with its orders was proven and warranted imposition of monetary penalty after reviewing the entity’s answer and giving it a personal hearing.
