Manappuram Finance Fined ₹2.70 Lakh by RBI for KMP Pay Norms
Why in the news
RBI fined Manappuram Finance for not following pay rules meant for senior executives.
Key facts
- Penalty: ₹2.70 lakh, under the 1934 RBI Act.
- Subject: KMP compensation guidelines for NBFCs.
- Found in: RBI’s statutory inspection, based on finances at 31 March 2025.
| Aspect | Detail |
|---|---|
| Firm’s action | All variable pay given upfront to certain KMPs |
| RBI requirement | Part of variable pay must be deferred |
| Framework | Scale Based Regulation (SBR) |
Exam angle
- KMP = Key Managerial Personnel.
- Rule broken: deferral of part of variable pay.