Mumbai, March 13 The Reserve Bank of India has imposed a penalty of ₹2.70 lakh on Manappuram Finance for deficiencies in regulatory compliance.
Based on the supervisory findings of non-compliance with RBI directions and related correspondence, a notice was issued to the company advising it to explain why a penalty should not be imposed for failing to comply with these directions, an RBI statement said.
After considering the company’s response to the notice and oral submissions, the RBI said it found that Manappuram Finance had paid the entire variable pay upfront to certain key managerial personnel, without any deferment.
However, the RBI added that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered into by the company with its customers.
Furthermore, the imposition of the monetary penalty is without prejudice to any other action that may be initiated by the RBI against the company, the central bank said.