Manappuram Finance has been fined Rs 20 lakh by the Reserve Bank as it failed to comply with some NBFC regulations. The central bank stated on Friday that this fine against the Thrissur-based gold loan company, which is the second-largest pure-play lender by AUM, is based on the company’s regulatory compliance shortcomings and is not meant to question the legality of any transaction or agreement the company has entered into with its clients.
A review of the risk assessment report, inspection report, supervisory letter, and all related correspondence regarding the same revealed non-compliance with the aforementioned instructions to the extent that it did not designate specific gold loan accounts with overdue of more than 90 days as non-performing assets. The company underwent a statutory inspection by the Reserve Bank of India (RBI) regarding its financial standing as of March 2021a.
In a report that the RBI issued regarding this cited, “The Reserve Bank of India (RBI) has, by an order dated June 12, 2023, imposed a monetary penalty of ₹20.00 lakh (Rupees Twenty lakh only) on Manappuram Finance Limited, Thrissur (the company) for non-compliance with certain provisions of the “Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016”.
The Reserve Bank of India further added that this action is based on regulatory compliance issues, and is not meant to rule on the legality of any agreements or transactions the company has with its clients. Background information on the 20 lakh rupee ($20, 000) fine imposed on Manappuram Finance was provided by the RBI. According to the document, the RBI performed a statutory inspection of the company in relation to its financial situation as of March 31, 2021, and a review of the Risk Assessment Report, Inspection Report, supervisory letter, and all related correspondence regarding the same revealed, among other things, that the company had not complied with the aforementioned instructions to the extent (i) that it had.
A notice was sent to the company in response to this, advising it to provide justification as to why a fine should not be imposed for failing to follow the RBI’s stated instructions.
Also Read: Sensex Soars 466 Points To Conclude At Lifetime high Of 63,384
The election petition contests PM Modi's election to the Lok Sabha. The petitioner claims that…
The petition criticized the NBE's failure to disclose essential examination materials, such as question papers,…
Reddy accused Naidu of damaging the reputation of the Sri Venkateswara Swamy temple. He claimed…
The funds will accelerate ATGL’s capital expenditure program, allowing rapid expansion of its CGD network…
IICF members acknowledged the slow fundraising progress, with only about Rs 1 crore raised over…
Nadda urged CM Mann to expedite the payment process, highlighting the impact on families, particularly…