The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement
FinTech BizNews Service
Mumbai, March 13, 2026: The Reserve Bank of India (RBI) has, by an order dated March 09, 2026, imposed a monetary penalty of Rs2.70 lakh (Rupees Two Lakh Seventy Thousand only) on Manappuram Finance Limited (the company) for non-compliance with certain directions issued by RBI on ‘Guidelines on Compensation of Key Managerial Personnel - Deferral of variable pay’. This penalty has been imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2025. Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found that the following charge against the company was sustained, warranting imposition of monetary penalty:
The company had paid the entire variable pay upfront to certain Key Managerial Personnel, without any deferment.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.
