The Reserve Bank of India (RBI) said on Monday 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).
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), RBI said in a statement.
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers," it said.
"It was observed that the entity was non-compliant with the directions issued by RBI on KYC and small PPI requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions," the central bank said.
After considering the entity's response and giving it a personal hearing, RBI concluded that the aforesaid charge of non-compliance with its directions was substantiated and warranted imposition of monetary penalty.
( With inputs from ANI )
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