Manappuram & Anand Rathi Global Finance Penalised For Regulatory Non-Compliance
The Reserve Bank has levied monetary penalties on Manappuram Finance and Anand Rathi Global Finance due to regulatory compliance lapses. In a statement released on Thursday, the banking regulator announced a penalty of Rs 42.78 lakh on Manappuram Finance Limited, Thrissur, for failing to comply with specific provisions outlined in the "Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016."
Following a review of the Risk Assessment Report, Inspection Report, supervisory letter and related correspondence, the RBI observed that Manappuram Finance did not adhere to the RBI's directives regarding the payment of surplus amounts to certain borrowers. These surplus amounts were realized through the auction of gold articles pledged by the borrowers during the period from 1 April 2021 to 30 September 2022.
