IndusInd Bank, Manappuram Finance RBI Penalty: The Reserve Bank of India recently fined two big companies over non-compliance. In a statement last week, the central bank said both the entities have been penalised for non-compliance with interest rate and KYC norms.
Reserve Bank of India stated that it had conducted the statutory inspection of the companies with reference to their financial position as of March 31, 2023.
IndusInd Bank, Manappuram Finance RBI Penalty
The central bank on Friday imposed a penalty of Rs 47.3 lakh on the companies collectively. While it has fined IndusInd Bank by Rs 27.3 lakh, the RBI penalty on Manappuram Finance amounts to Rs 20 lakh. Both the entities have been for separate reasons.
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IndusInd Bank RBI Penalty Reason
In its statement, the central bank said that the penalty on IndusInd Bank “pertained to the opening of certain savings deposit accounts in the name of ineligible entities. This warranted the imposition of a monetary penalty. The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreements entered into by the bank with its customers.”
Manappuram Finance RBI Penalty Reason
The RBI fine on Manappuram Finance was imposed as it failed to undertake customer PAN verification at the time of customer acceptance and for allotting multiple identification codes to some customers instead of a Unique Customer Identification Code (UCIC) for each customer.
What IndusInd Bank, Manappuram Finance Said on RBI Fine
While IndusInd Bank noted that the financial impact of the order is Rs 27.3 lakh, Manappuram Finance said, “There is no material impact on the financial, operation or other activities of the Company due to the said Order.” The lender added, “Penalty has been imposed by Enforcement Department, Reserve Bank of India, for opening savings deposit accounts in the name of ineligible entities.”
