RBI imposes ₹2.7 lakh penalty on Manappuram Finance for KMP pay breach

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.70 lakh on Manappuram Finance for non-compliance with its guidelines on compensation of key managerial personnel (KMP), wherein the lender paid the entire variable pay upfront to certain KMPs without deferring a portion of the compensation, as required under the guidelines.

The action follows the central bank’s statutory inspection of the company regarding its financial position as of March 31, 2025. Based on supervisory findings indicating non-compliance with the RBI’s directions, the central bank issued a notice to the company asking it to show cause as to why a penalty should not be imposed.

After examining the company’s written response and oral submissions made during a personal hearing, the RBI concluded that the charge against the firm was substantiated.