On July 26, the Reserve Bank of India (RBI) imposed monetary penalties on three Payment System Operators (PSOs) for failing to comply with KYC (Know Your Customer) regulations. The fines are as follows: Rs 41.50 lakh for Manappuram Finance, Rs 87.55 lakh for Ola Financial Services Pvt. Ltd., and Rs 240.75 lakh for Visa Worldwide Pte. Limited.
These penalties come in response to violations related to KYC requirements. The RBI issued notices to the involved entities, requesting them to explain why penalties should not be imposed. Following a review of their written responses and oral submissions made during personal hearings, the RBI determined that the entities had indeed violated its directives, justifying the monetary penalties.
Ola Financial Services Pvt. Ltd. also reported a shortfall in the balance of its escrow account and subsequently applied for compounding of the violation. After reviewing the application and considering oral arguments during the hearing, the RBI decided that the violation could be compounded.
In the case of Visa Worldwide Pte. Limited, it was found that the entity had implemented a payment authentication system without prior regulatory approval from the RBI. Visa filed an application for compounding the violation in response to the show cause notice. After evaluating the application and the oral submissions, the RBI concluded that this contravention could also be compounded.
