**Executive Summary**
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.10 lakh on Mannakrishna Investments Private Limited for non-compliance with certain provisions of the 'Master Direction – Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023' relating to 'Governance Issues'. The order was issued on November 25, 2025, and the press release is dated November 28, 2025. The penalty was imposed after a statutory inspection conducted by RBI with reference to the company’s financial position as of March 31, 2024.
**Key Points / Main Content**
* **Penalty Imposition:**
* RBI imposed a monetary penalty of ₹3.10 lakh on Mannakrishna Investments Private Limited.
* The penalty is for non-compliance with specific RBI directions regarding 'Governance Issues'.
* The specific regulation is 'Master Direction – Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023'.
* **Reason for Penalty:**
* Mannakrishna Investments Private Limited failed to take prior written permission from RBI while appointing a director.
* This appointment resulted in a change in management due to a change of more than 30% of its directors, excluding independent directors.
* The penalty was imposed following a statutory inspection with reference to the company's financial position as of March 31, 2024.
* RBI issued a notice to the company, advising it to show cause as to why the penalty should not be imposed.
* **Legal Basis:**
* The penalty is imposed 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.
* **Disclaimer:**
* The action is based on deficiencies in regulatory compliance and does not indicate an opinion on the validity of any transaction or agreement by the company with its customers.
* The penalty is without prejudice to any other action RBI may initiate against the company.
**Impact Analysis**
**Mannakrishna Investments Private Limited**
* **Impact:**
* Financial penalty of ₹3.10 lakh imposed.
* Subject to scrutiny and corrective actions for non-compliance with RBI directives.
* Potential reputational impact.
* **Action Required:**
* Pay the monetary penalty of ₹3.10 lakh.
* Strengthen compliance procedures to adhere to RBI regulations, particularly regarding director appointments and governance.
* Review and rectify the director appointment process to ensure prior written permission from RBI is obtained when necessary.
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 directions for which non-compliance led to the penalty.
Mannakrishna Investments Private Limited: The company on which the monetary penalty was imposed.
Reserve Bank of India Act, 1934: The act under which powers were conferred to impose the penalty.
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