RBI Imposes ₹2.70 Lakh Penalty on Manappuram Finance for Violating KMP Compensation Guidelines
Moneylife Digital Team 16 March 2026
Reserve Bank of India (RBI) has imposed a penalty of ₹2.70 lakh on Manappuram Finance Ltd, a Kerala-based non-banking financial company (NBFC), for non-compliance with directions related to the guidelines on compensation for key managerial personnel (KMP), specifically regarding the deferral of variable pay.
 
According to RBI, the irregularities were detected during its statutory inspection of the NBFC. The inspection revealed that the company had paid the entire variable pay upfront to certain key managerial personnel, without any deferment.
 
After reviewing the NBFC’s written response and oral submissions made during a personal hearing, RBI concluded that the violation of its directions had been substantiated and warranted the imposition of a monetary penalty.
 
RBI says the penalty imposed on Manappuram Finance is based on deficiencies in regulatory compliance and is not intended to pronounce on the validity of any transaction or agreement entered by the banks with their customers.
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