On Friday, Reserve Bank of India (RBI) said that a monetary penalty of Rs 20 lakh has been imposed on Manappuram Finance Ltd. Actually, RBI has made a list of rules for the operation of establishments including banks, which is necessary for everyone to follow. But many times it is seen that many rules are violated by these establishments.

Is penalty imposed?

All economic establishments are required to follow the rules issued by RBI. During the investigation by RBI, if any establishment is found violating the rules, then penalty is imposed on it and if necessary, even stricter action is taken. Financial penalty has been imposed for failure during similar investigations.

Actually, RBI has found in its investigation that Know Your Customer (KYC) rules of RBI were violated by Manappuram Finance Ltd. Permanent Account Number (PAN) verification of customers was also not done.