RBI imposes penalty on five PPI issuers

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RBIThe Reserve Bank of India (RBI) has announced that it has imposed penalties on five Prepaid Payment Instrument (PPI) issuers, for violation of regulatory norms.

The penalties have been imposed on  Vodafone’s m-pesa, Flipkart’s PhonePe, My Mobile Payments Limited which own Oxigen and Sodexo, Y-Cash Software Solutions Private Limited which owns YPayCash and GI Technology Private Limited, for non-compliance of guidelines.

The bank said in a statement, “In exercise of powers vested under Section 30 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India has imposed monetary penalty on the following five PPI Issuers for non-compliance of regulatory guidelines.”

The bank has imposed a penalty of Rs 3.05 crore on Vodafone m-pesa, Rs 5 lakh on Y-Cash Software Solutions and Rs 1 crore each on Mobile Payments, PhonePe, Private and GI Technology.

RBI said that it has also imposed penalty of Rs 29,66,959 and Rs 10,11,653 on Western Union Financial Services Inc, USA, and MoneyGram Payment Systems Inc, USA, respectively, for non-compliance of regulatory guidelines.

According to the section 30 of the Payment and Settlement System Act, 2007, the penalty has to be paid within 30 days of the order being passed.

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