Manappuram Finance Share Price in Focus After RBI Imposes ₹2.70 Lakh Penalty for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.70 lakh on Manappuram Finance Limited. The penalty is due to non-compliance with RBI's guidelines on deferral of variable pay for key managerial personnel (KMPs) for the financial year 2024-25. 

Details of the RBI Penalty 

On March 9, 2026, the RBI issued a speaking order imposing a penalty on Manappuram Finance Limited. The order was communicated to the company via an email dated March 13, 2026. The penalty relates to the financial year 2024-25, during which the company failed to comply with RBI's directions on deferring variable pay for 2 KMPs. 

The RBI's inspection revealed that the company paid the entire variable pay upfront to these KMPs, contrary to the guidelines that mandate deferral of such payments. This non-compliance led to the imposition of a ₹2.70 lakh fine under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934. 

Financial Implications and Company Response 

The monetary penalty of ₹2.70 lakh is not expected to have a material impact on the financials or operations of Manappuram Finance Limited. In response to the RBI's order, the company has revised its remuneration policy to include mandatory deferral of variable pay for KMPs and senior management personnel (SMPs), aligning with RBI guidelines. 

The revised policy, approved by the Nomination and Remuneration Committee and the Board, incorporates provisions for deferred variable pay along with malus and clawback clauses. The company is also recovering the deferred portion of the variable pay already disbursed for FY 2024-25 from the concerned KMPs in instalments. 

Read More: RBI Levies ₹1.85 Lakh Penalty on Bank of India for Currency Chest Violations! 

Manappuram Finance Share Price Performance 

As of March 13, 2026, at 3:30 PM, Manappuram Finance share price on NSE was closed at ₹256.10 up by 0.22% from the previous closing price. 

Conclusion 

The RBI's penalty on Manappuram Finance Limited underscores the importance of adhering to regulatory guidelines. The company's prompt action in revising its remuneration policy reflects its commitment to compliance and regulatory standards. 

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