Business

Manappuram Finance fined For Rs 20 Lakh For Rule Violations

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

Malika Sahni

Recent Posts

PM Modi Highlights 11 Years Of Seva, Governance, & Inclusive Transformation

PM Modi marked 11 years of NDA rule by highlighting achievements in governance, economic growth,…

12 mins ago

Massive Explosives Seized In Bahraich; MLA Demands Action

In a major security incident in Bahraich district, over 500 kilograms of explosives were found…

30 mins ago

Indian Stock Markets Open Strong As IT & PSU Banks Lead The Rally

India’s benchmark indices opened on a positive note Monday, with strong buying interest in IT,…

55 mins ago

India Welcomes World’s Largest Container Ship At Vizhinjam Port

MSC IRINA-the world’s largest container ship by TEU capacity- has arrived at Vizhinjam International Seaport…

1 hour ago

Google CEO: AI To Boost Creativity, Not Cut Tech Jobs

Google CEO Sundar Pichai says AI is enhancing engineering productivity and creativity, not eliminating jobs-at…

2 hours ago

3D Nose Model Reveals Unexpected Players In Sense Of Smell Regeneration

A study from Tufts University introduces a new 3D model of olfactory tissue, shedding light…

3 hours ago