RBI imposes Monetary Penalty on three Payment System Operators

Case Brief

The Reserve Bank of India imposed monetary penalties on two Payment System Operators for non-compliance with the Master Direction – Know Your Customer (KYC) Direction, 2016. Manappuram Finance Limited was fined ₹41.50 lakh and Ola Financial Services Pvt. Ltd. was fined ₹33.40 lakh. RBI said the entities were non-compliant with KYC requirements, issued show-cause notices, and after considering their written submissions and oral hearing, found the charges substantiated and deserving of penalty. The release also states that compounding orders were issued separately to Ola Financial Services Pvt. Ltd. and Visa Worldwide Pte. Limited for contraventions related to PPIs and card-not-present authentication rules, including an instance where Visa Worldwide had implemented a payment authentication solution without regulatory clearance.