RBI imposes monetary penalty on Mobikwik, Spice Money

0 7,566

Mumbai : The Reserve Bank of India (RBI) has imposed monetary penalty of Rs.1 crore each on two Payment System Operators (PSOs) One Mobikwik Systems Private Limited and Spice Money Limited, for committing offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act).

RBI has imposed the penalties for not complying with the directions issued by RBI on net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs).

“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” RBI said in a statement.

“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” RBI said.

Leave A Reply

Your email address will not be published.