RBI Penalises Visa Worldwide, Manappuram Finance and Ola Financial for Non-compliance
Moneylife Digital Team 29 July 2024
Reserve Bank of India (RBI) penalised three payment system operators (PSO), namely, Manappuram Finance Ltd, Ola Financial Services Pvt Ltd, and Visa Worldwide Pte Ltd, for non-compliance with the regulator’s guidelines.
 
A penalty of Rs2.40 crore has been imposed on Visa Worldwide and      Rs41.5 lakh on Manappuram Finance. Ola Financial Services has been penalised Rs87.55 lakh in two cases.
 
The banking regulator imposed a penalty of Rs2.40 crore on Visa Worldwide after it found the entity put a payment authentication solution in place without receiving the appropriate clearance from the regulators.
 
Manappuram Finance and Ola Financial Services have been penalised for non-compliance with certain provisions of know-your-customer (KYC) directions.
 
Further, RBI issued a compounding order on Ola Financial Services and stated that it contravened some provisions in the master directions for prepaid payment instruments (PPIs). For these violations, RBI levied a fine of Rs54.15 lakh, making the overall fine to Rs87.55 lakh for Ola Financial Services.
 
RBI noted that Ola Financial Services had also reported instances of shortfall in the balance in its escrow account and filed an application to compound the violation.
 
“The above actions have been taken in the exercise of powers vested in RBI under the provisions of Section 30 and Section 31 of the Payment and Settlement Systems Act, 2007 and 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 entity with its customers,” the central bank stated.
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