BANKING AND ECONOMY
A non-banking finance company - Manappuram Finance Ltd - was fined Rs17.63 lakhs by the Reserve Bank of India (RBI) for violating KYC rules and prepaid payment instruments norms. The fine was imposed as per Section 30 of the Payment and Settlement Systems Act, 2007 and issued a notice in this regard.
This action was based on deficiencies in regulatory compliance and is not intended to be pronounced upon the validity of any transaction or agreement entered into by the entity with its customers.
The financing company was not obeyed with certain provisions of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs) dated October 11, 2017 (updated as of February 28, 2020) and the Master Direction - Know Your Customer (KYC) Direction dated February 25, 2016 (as updated on April 20, 2020).
Prepaid payment instruments are payment instruments that facilitate the purchase of goods and services against the value stored on such instruments.