Mumbai, Dec 20 (PTI) The Reserve Bank has imposed a penalty of Rs 20 lakh on Manappuram Finance for non-compliance with certain provisions of Know Your Customer (KYC) norms.
The RBI said a statutory inspection of the NBFC (non-banking financial company) was conducted with reference to its financial position as on March 31, 2023 and a notice was issued to the company.
After considering the reply of Manappuram Finance to the notice, RBI said, the company failed to undertake verification of PAN of customers from verification facility of the issuing authority at the time of customer acceptance.
Also, it allotted multiple identification codes to certain customers instead of a Unique Customer Identification Code (UCIC) for each customer.
The penalty has been imposed by an order dated December 16.
RBI also added that the action against the company is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by Manappuram Finance.
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