**Executive Summary**
This press release, dated November 28, 2025, announces that the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 lakh on Mannakrishna Investments Private Limited. The penalty is for non-compliance with certain provisions of the 'Master Direction – Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023' related to 'Governance Issues'. The order was issued on November 25, 2025.
**Key Points / Main Content**
* **Monetary Penalty:**
* RBI imposed a penalty of ₹3.10 lakh on Mannakrishna Investments Private Limited.
* **Reason for Penalty:**
* Non-compliance with provisions of the 'Master Direction – Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023' relating to 'Governance Issues'.
* The company failed to take prior written permission of the RBI while appointing a director resulting in change in management on account of change in more than 30 per cent of its directors, excluding independent directors.
* **Authority & Legal Basis:**
* Penalty imposed in exercise of powers conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause (aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
* **Inspection & Notice:**
* The statutory inspection of the company was conducted with reference to its financial position as on March 31, 2024.
* A notice was issued to the company advising it to show cause as to why the penalty should not be imposed.
* **RBI's Position:**
* The action is based on deficiencies in regulatory compliance.
* The penalty does not invalidate any transactions or agreements entered into by the company with its customers.
* The penalty is without prejudice to any other action that may be initiated by RBI against the company.
**Impact Analysis**
**Mannakrishna Investments Private Limited**
* **Impact:**
* Financial: incurring a monetary penalty of ₹3.10 lakh.
* Reputational: public announcement of non-compliance.
* Operational: need to improve compliance procedures related to director appointments.
* **Action Required:**
* Pay the monetary penalty.
* Review and strengthen compliance procedures related to director appointments to avoid future penalties.
* Inform their customers and stakeholders about the penalty and the reasons for it, if necessary.
**RBI**
* **Impact**
* Demonstrates commitment to enforcing regulatory compliance within the financial sector.
* May require additional resources to monitor Mannakrishna Investments Private Limited.
* **Action Required**
* Monitor Mannakrishna Investments Private Limited's compliance with corrective actions.
* Consider further actions if non-compliance persists.
Key Entities Referenced
Reserve Bank of India (RBI): The regulator that imposed the monetary penalty.
Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023: The specific RBI directions for non-banking financial companies, related to 'Governance Issues', that were not complied with.
Section 58G: Section of the Reserve Bank of India Act, 1934 under which the penalty was imposed.
Mannakrishna Investments Private Limited: The entity on which the monetary penalty was imposed.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
November 28, 2025
RBI imposes monetary penalty on Mannakrishna Investments Private Limited
The Reserve Bank of India (RBI) has, by an order dated November 25, 2025,
imposed a monetary penalty of ₹3.10 lakh (Rupees Three lakh ten thousand only) on
Mannakrishna Investments Private Limited (the company) for non-compliance with
certain provisions of the ‘Master Direction – Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation) Directions, 2023’ issued by RBI, relating
to ‘Governance Issues’. This penalty has been imposed in exercise of powers
conferred on RBI under clause (b) of sub-section (1) of Section 58G read with clause
(aa) of sub-section (5) of Section 58B of the Reserve Bank of India Act, 1934.
The statutory inspection of the company was conducted by RBI with reference to
its financial position as on March 31, 2024. Based on the supervisory findings of non-
compliance with RBI directions and related correspondence in that regard, a notice
was issued to the company advising it to show cause as to why penalty should not be
imposed on it for failure to comply with the said directions.
After considering the company’s reply to the notice and oral submissions made
during the personal hearing, RBI found, inter alia, that the following charge against the
company was sustained, warranting imposition of monetary penalty:
The company had failed to take prior written permission of the RBI while appointing
a director resulting in change in management on account of change in more than 30
per cent of its directors, excluding independent directors.
This action is based on deficiencies in regulatory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered into by the
company with its customers. Further, imposition of this monetary penalty is without
prejudice to any other action that may be initiated by RBI against the company.
(Brij Raj)
Press Release: 2025-2026/1586 Chief General Manager