Mumbai The Reserve Bank of India (RBI) has imposed a penalty of Rs 2.70 lakh on non-banking financial company Manappuram Finance. RBI has taken this action for deficiencies in non-compliance of some regulatory rules.
The Reserve Bank said in a statement that a notice was issued to the company based on the findings of investigation into non-compliance with the instructions and related correspondence. In the notice, the company was asked why it did not follow the instructions and why penalty should not be imposed on it for this failure.
After considering the company’s response to the notice and oral arguments, the Reserve Bank said it found that Manappuram Finance had already paid the full variable salary to certain key managerial personnel without any delay.
However, RBI also said that this penalty has been imposed on the basis of deficiencies in compliance with regulatory rules and is not intended to pass any judgment on the validity of any transaction or agreement entered into by the company with its customers.
The central bank said that imposing a monetary penalty does not mean that the Reserve Bank cannot take any other action against the company.
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