Manappuram Finance Ltd has been fined ₹20 lakh by the Reserve Bank of India (RBI) for failing to comply with some of the rules outlined in the Reserve Bank of India (Know Your Customer (KYC)) Direction, 2016.
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Following a required examination of the business’s financial status as of Mar 31, 2023, the order was issued on Dec 16, 2024.
Significant violations of RBI’s KYC regulations were found during the inspection, including the failure to use the issuing authority’s verification tool to confirm clients’ Permanent Account Numbers (PANs) at the time of customer acceptance.
Furthermore, Manappuram Finance assigned several identification codes to specific clients rather than following the protocol that requires each client to be assigned a Unique Customer Identification Code (UCIC). The punishment was applied using the authority that the RBI had been given.