RBI Imposes Rs 2.7 Lakh Penalty on Manappuram Finance for KMP Compensation Guideline Violation
In March 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of Rs 2.70 lakh on Manappuram Finance Limited, a Non-Banking Financial Company (NBFC), for non-compliance with Key Managerial Personnel (KMP) compensation guidelines.
Key Details of Penalty:
Inspection Basis: The violation was identified during the statutory inspection conducted by RBI based on the company’s financial position as of 31 March 2025.
Action: The RBI clarified that the penalty, imposed under the Reserve Bank of India Act, 1934, addresses regulatory deficiencies and does not affect the validity of existing customer transactions.
Impact: Manappuram Finance has revised its Remuneration Policy to include mandatory deferral, malus, and clawback provisions. The board has also begun recovering the deferred compensation from the concerned KMPs in installments to ensure compliance with the Scale Based Regulation (SBR) framework.