New Delhi: reserve Bank of India have put a punishment On three Payment System OperatorsIn other words Visa Worldwide, Ola Financial ServicesAnd Manappuram FinanceReasons for non-compliance by companies regulatory compliance,
Visa Worldwide Private Limited has been fined Rs 2.4 crore, while Manappuram Finance Limited has been fined Rs 41.5 lakh. Hailstone Financial Services has been fined Rs 87.55 lakh in two separate cases.
According to reserve Bank of IndiaMonetary penalties were imposed on Manappuram Finance and Ola Financial Services for non-compliance of certain provisions of the Act. know your Customer (KYC) instructions.
Compounding orders were also issued to Ola Financial Services and Visa Worldwide for violating specific provisions.
RBI found that Visa Worldwide Private Limited had implemented the payment authentication solution without obtaining the required regulatory approvals from the central bank. As a result, a notice was issued to the company, asking it to explain why it should not be fined for non-compliance with the directions.
In response, Visa Worldwide filed an application to compound the violation, which was considered negotiable by the RBI after analysing the application and considering the oral submissions made during the personal hearing.
Similarly, Manappuram Finance Limited and Ola Financial Services were also found non-compliant with RBI directions on KYC requirements.
Notices were also issued to these entities and fines were imposed after considering their written replies and oral submissions. Additionally, RBI said that Ola Financial Services reported cases of shortfall in its escrow account balance and filed an application to mitigate the violation.
After analysing the compounding application and the oral submissions made during the personal hearing, RBI determined that the violations of Ola Financial Services were liable to be compounded.
The apex bank also said that these penalties 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.
(with inputs from agencies)
Visa Worldwide Private Limited has been fined Rs 2.4 crore, while Manappuram Finance Limited has been fined Rs 41.5 lakh. Hailstone Financial Services has been fined Rs 87.55 lakh in two separate cases.
According to reserve Bank of IndiaMonetary penalties were imposed on Manappuram Finance and Ola Financial Services for non-compliance of certain provisions of the Act. know your Customer (KYC) instructions.
Compounding orders were also issued to Ola Financial Services and Visa Worldwide for violating specific provisions.
RBI found that Visa Worldwide Private Limited had implemented the payment authentication solution without obtaining the required regulatory approvals from the central bank. As a result, a notice was issued to the company, asking it to explain why it should not be fined for non-compliance with the directions.
In response, Visa Worldwide filed an application to compound the violation, which was considered negotiable by the RBI after analysing the application and considering the oral submissions made during the personal hearing.
Similarly, Manappuram Finance Limited and Ola Financial Services were also found non-compliant with RBI directions on KYC requirements.
Notices were also issued to these entities and fines were imposed after considering their written replies and oral submissions. Additionally, RBI said that Ola Financial Services reported cases of shortfall in its escrow account balance and filed an application to mitigate the violation.
After analysing the compounding application and the oral submissions made during the personal hearing, RBI determined that the violations of Ola Financial Services were liable to be compounded.
The apex bank also said that these penalties 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.
(with inputs from agencies)