Date: July 28, 2024
Source: https://www.msn.com
Mumbai, India – The Reserve Bank of India (RBI) has taken action against multiple payment system operators (PSOs) for non-compliance with regulatory guidelines. Visa Worldwide, Ola Financial Services, and Manappuram Finance have been penalized for various deficiencies.
Visa Fined for Unauthorized Payment Method In a significant move, Visa Worldwide Pte Limited was fined Rs 2.4 crore for operating an unauthorized payment transfer method. The RBI has stated that the company implemented a payment authentication solution without obtaining necessary regulatory clearance. Visa has acknowledged the RBI’s order and reaffirmed its commitment to adhering to Indian regulations.
Ola and Manappuram Penalized for KYC Violations Additionally, Ola Financial Services incurred a penalty of Rs 87.55 lakh across two cases, while Manappuram Finance was fined Rs 41.5 lakh. Both companies were found to be non-compliant with Know Your Customer (KYC) directives.
RBI’s Crackdown on Fintech Compliance These penalties underscore the RBI’s increasing scrutiny of the fintech industry. The central bank has been taking steps to ensure that payment system operators adhere to stringent regulations to protect consumers and maintain financial stability.
This action follows a previous directive issued to Visa in February, instructing the company to halt the use of an unauthorized route for certain commercial payments.
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