RBI Imposes Penalty on Manappuram Finance For Violating KYC Norms
Moneylife Digital Team 19 April 2022
The Reserve Bank of India (RBI) has imposed monetary penalty of Rs17 lakh on Manappuram Finance Ltd (a non banking finance company mainly known for providing personal loans against gold or gold jewellery) for violating its directions on know your customer (KYC) norms.
 
The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007, it said in a statement.
 
"It was observed that the entity was non-compliant with the directions issued by RBI on KYC and small prepaid instruments (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," RBI said.
 
After considering the entity’s response and giving it a personal hearing, RBI concluded that the non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.
 
Comments
rennynjacob
3 years ago
Recently I found when I checked my CIBIL score, manappuram finance opened two loan accounts in my name and closed within 5 days span. I never gone to any of their branches or contacted them thru any channels. What could be this ?
krishan2k5
4 years ago
Norms are violated by individuals and payment shall be made by share holders. Why NOT cut of 17 lakhs be made from the personnel dealing with NYC issues.
RBI should mention what norms have been violated and is the penalty sufficient to recover losses and will act as deterrent in future actions by the company.
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