RBI imposes monetary penalty on Manappuram Finance Limited

Case Brief

By order dated December 16, 2024, RBI imposed a monetary penalty of ₹20,00,000 on Manappuram Finance Limited. The penalty followed a statutory inspection and a show-cause process in which RBI found the company had not complied with certain provisions of the RBI’s KYC Direction, 2016. Specifically, the company failed to verify PAN using the issuing authority’s verification facility at the time of customer acceptance and allotted multiple identification codes to some customers instead of a UCIC. RBI stated the action was based on regulatory deficiencies and did not pronounce on the validity of any transaction or agreement.