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RBI Imposes ₹47.30 Lakh Penalty on IndusInd Bank and Manappuram Finance for Regulatory Non-Compliance.

Banking & Finance | Dated: 27 Dec 2024

In December 2024, the Reserve Bank of India (RBI) levied a monetary penalty totaling ₹47.30 lakh on IndusInd Bank Limited and Manappuram Finance Limited for non-compliance with specific provisions of RBI directions.

🎯 Key Highlights:

  • - A penalty of ₹27.3 lakh was imposed on IndusInd Bank under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, for non-compliance with the provisions of the RBI (Interest Rate on Deposits) Directions, 2016.
  • - A penalty of ₹20 lakh was imposed on Manappuram Finance under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the RBI Act, 1934, for non-compliance with certain provisions of the RBI (Know Your Customer, KYC) Direction, 2016.

💡 Other Important Facts:

  • (i) The RBI conducted the Statutory Inspection for Supervisory Evaluation (ISE 2023) of IndusInd Bank based on its financial position as of March 31, 2023, and issued a notice after finding non-compliance with its directions. Upon reviewing the bank's response, additional submissions, and oral statements during the hearing, the RBI concluded that the bank had opened savings accounts for ineligible entities, resulting in the imposition of a monetary penalty.
  • (ii) The RBI conducted a statutory inspection of Manappuram Finance based on its financial position as of March 31, 2023, and issued a notice for failing to comply with its directions.
  • (iii) After reviewing the company's response and oral submissions during the hearing, the RBI found that the company had failed to verify customers' Permanent Account Numbers (PAN) using the issuing authority's facility and had assigned multiple identification codes to some customers instead of a Unique Customer Identification Code (UCIC), which warranted a monetary penalty.

📚 Test Your Knowledge:

What is the total penalty Recently imposed by the RBI on IndusInd Bank and Manappuram Finance?

Correct Answer: ₹47.30 lakh

🚀 Quick Recap:

About IndusInd Bank Limited

  • MD & CEO : Sumant Kathpalia
  • Headquarters Mumbai