Mumbai, 14 March (H.S.): The Reserve Bank of India (RBI) has imposed a fine of ₹2.70 lakh on non-banking financial company Manappuram Finance for failing to adhere to certain regulatory norms.In a statement, the RBI explained that the action followed an examination of the company's compliance with directives and related correspondence.

A notice was issued to Manappuram Finance, seeking explanations for its non-compliance and justifying why a penalty should not be levied.After reviewing the company's written response and oral submissions, the central bank determined that Manappuram had prematurely disbursed full variable pay to some key managerial personnel without any delay, in violation of norms.

The RBI clarified that the monetary penalty addresses specific shortcomings in regulatory compliance and does not comment on the validity of any transactions or agreements between the company and its customers. It further noted that imposing this fine does not preclude the central bank from taking additional enforcement actions against the lender.

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Hindusthan Samachar / Jun Sarkar