The Reserve Bank of India (RBI) has imposed monetary penalty (₹100 lakh each) on two Payment System Operators (PSOs): 1. One Mobikwik Systems Private Limited, 2. Spice Money Limited.
Reason for Penalty Imposed by RBI
The penalties have been imposed in the exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act.
Press Release Issued by RBI
Date : Dec 23, 2021
Reserve Bank of India imposes Monetary Penalty on two Payment System Operators
The Reserve Bank of India (RBI) has imposed monetary penalty on the following two Payment System Operators (PSOs) for committing offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act).
|Sr. No.||Name of the PSO||Speaking Order dated||Amount of Penalty|
|1||One Mobikwik Systems Private Limited||December 07, 2021||100.00|
|2||Spice Money Limited||December 07, 2021||100.00|
The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act. These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
It was observed that the above entities had not complied with the directions issued by RBI on net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs). As these were offences of the nature referred to in Section 26 (6) of the PSS Act, notices were issued to the entities. After reviewing their written responses and the oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.
Chief General Manager
Press Release: 2021-2022/1407
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