RBI imposes monetary penalty on Manappuram Finance, Anand Rathi Global Finance

Reserve Bank of India (RBI) on November 16 said it has imposed a monetary penalty on Manappuram Finance and Anand Rathi Global Finance for non-compliance with certain provisions.

 

By an order dated October 31, 2023, the RBI has imposed a monetary penalty on Manappuram Finance of Rs 42.78 lakh for non-compliance with certain provisions of the “Non-Banking Financial Company – Systemically Important NonDeposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016”, according to a press release dated today.

“This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of Section 58 G read with clause (aa) of subsection (5) of Section 58 B of the Reserve Bank of India Act, 1934,” said RBI in its press release.

Meanwhile, by an order dated October 30, the RBI also imposed a monetary penalty of Rs 20 lakh on Anand Rathi Global Finance Limited for non-compliance with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016.

RBI in its statement said that the statutory inspection of the company was conducted by RBI with reference to its financial position as of March 31, 2021, and examination of the Risk Assessment Report, Inspection Report, Supervisory Letter, and all related correspondence pertaining to the same revealed, inter alia, that the company failed to carry out on-going due diligence of its customers.

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