Thursday, Aug 11, 2022
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Reserve Bank Of India Slaps Monetary Fine On Mobikwik Systems, Spice Money

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 30 of the PSS Act, the central bank said in a statement.

The Reserve Bank of India (RBI) on Thursday imposed monetary penalty on the two Payment System Operators (PSOs) One Mobikwik Systems and Spice Money for non-compliance of norms, the central bank said in a statement.

Both the payment companies have been slapped with a fine of Rs 1 crore, as per the order issued by the central bank.

“It was observed that the above entities had not complied with the directions issued by RBI on networth requirement for Bharat Bill Payment Operating Units,” the RBI said.

As these were offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007, notices were issued to the entities, it further said.

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 30 of the PSS Act, it said.

"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," the statement added.

"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," the central bank said, according to a report published in Moneycontrol, citing RBI statement.

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