Reserve Bank of India is ₹A fine of 20 million to Manapuram Finance for failure to comply with certain provisions of the Non Banking Financial Company (NBFC). The RBI imposed this penalty on the NBFC for failing to classify certain gold loan accounts that are over 90 days overdue as non-performing assets (NPA).
Reserve Bank of India is ₹A fine of 20 million to Manapuram Finance for failure to comply with certain provisions of the Non Banking Financial Company (NBFC). The RBI imposed this penalty on the NBFC for failing to classify certain gold loan accounts that are over 90 days overdue as non-performing assets (NPA).
In this regard, the RBI issued a press statement stating, “The Reserve Bank of India (RBI), by order dated 12 June 2023, ₹2 million against Manapuram Finance Limited (Company) of Thrissur for non-compliance with certain provisions of “Non-Bank Financial Companies – Systemically Important Non-Deposit-Taking Companies and Instructions for Deposit-Taking Companies (Reserve Banks)” Rupees (2 Million Rupees Only), 2016”. This fine was imposed as an exercise of powers conferred on the RBI under the provisions of Section 58G (1) (b) of the Reserve Bank of India Act, 1934, which shall be read as Section 58B (5) (aa). “
In this regard, the RBI issued a press statement stating, “The Reserve Bank of India (RBI), by order dated 12 June 2023, ₹2 million against Manapuram Finance Limited (Company) of Thrissur for non-compliance with certain provisions of “Non-Bank Financial Companies – Systemically Important Non-Deposit-Taking Companies and Instructions for Deposit-Taking Companies (Reserve Banks)” Rupees (2 Million Rupees Only), 2016”. This fine was imposed as an exercise of powers conferred on the RBI under the provisions of Section 58G (1) (b) of the Reserve Bank of India Act, 1934, which shall be read as Section 58B (5) (aa). “
“This action is based on a lack of regulatory compliance and does not declare the validity of any deals or contracts that the company has entered into with its customers,” the RBI added.
“This action is based on a lack of regulatory compliance and does not declare the validity of any deals or contracts that the company has entered into with its customers,” the RBI added.
give this some background ₹Regarding the 20 million fine imposed on Manapuram Finance, the RBI said that the statutory inspection of the company will refer to its financial condition as of March 31, 2021, and the risk assessment report, inspection report, supervisory letter and related documents. announced that it was carried out by the RBI with reference to the inspection of all documents. The related communications demonstrate the company’s failure to comply with the foregoing instructions, in particular (i) not classifying certain gold loan accounts that are over 90 days past due as non-performing assets (NPA); It became clear. (ii) did not guarantee the maintenance of the required loan-to-value (LTV) ratio in certain gold loan accounts during 2020-21; To take this further, a notice was issued to the company recommending that it indicate why it should not be penalized for failing to comply with RBI instructions, as set out therein.
give this some background ₹Regarding the 20 million fine imposed on Manapuram Finance, the RBI said that the statutory inspection of the company will refer to its financial condition as of March 31, 2021, and the risk assessment report, inspection report, supervisory letter and related documents. announced that it was carried out by the RBI with reference to the inspection of all documents. The related communications demonstrate the company’s failure to comply with the foregoing instructions, in particular (i) not classifying certain gold loan accounts that are over 90 days past due as non-performing assets (NPA); It became clear. (ii) did not guarantee the maintenance of the required loan-to-value (LTV) ratio in certain gold loan accounts during 2020-21; To take this further, a notice was issued to the company recommending that it indicate why it should not be penalized for failing to comply with RBI instructions, as set out therein.
“Having considered the company’s response to the notification, the investigation of additional submissions made by the company, and oral submissions made during the individual hearing, the RBI was found guilty of non-compliance with the aforementioned RBI instructions and imposed the imposition of money. “Penalty,” the RBI concluded.
“Having considered the company’s response to the notification, the investigation of additional submissions made by the company, and oral submissions made during the individual hearing, the RBI was found guilty of non-compliance with the aforementioned RBI instructions and imposed the imposition of money. “Penalty,” the RBI concluded.
This is not the first time RBI has fined Manapuram Finance Limited. In November 2020, the Central Bank of India ₹Failure to comply with instructions issued by the RBI regarding verification of ownership of gold jewellery, contained in the Instructions for Non-Banking Financial Companies – Systemically Important Non-Deposit-Taking Companies and Deposit-Taking Companies (Reserve Banks), 2016, NBFC 500,000 fine for
This is not the first time RBI has fined Manapuram Finance Limited. In November 2020, the Central Bank of India ₹Failure to comply with instructions issued by the RBI regarding verification of ownership of gold jewellery, contained in the Instructions for Non-Banking Financial Companies – Systemically Important Non-Deposit-Taking Companies and Deposit-Taking Companies (Reserve Banks), 2016, NBFC 500,000 fine for
