New Delhi. The Reserve Bank of India (RBI) has imposed fines on Visa Worldwide, Ola Financial Services and Manappuram Finance for non-compliance with regulatory requirements. Taking major action against payment system operators, RBI has imposed a fine of Rs 2.4 crore on Visa Worldwide Private Limited, while Manappuram Finance Limited has been fined Rs 41.5 lakh. At the same time, Ola Financial Services has been fined Rs 87.55 lakh in two separate cases.
According to RBI, Manappuram Finance and Ola Financial Services have been fined for non-compliance of certain rules of Know Your Customer (KYC) instructions. Compounding orders have also been 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 necessary regulatory approval from the central bank. As a result, a notice was issued to the company. In which it was asked to give clarification.
Manappuram Finance Limited and Ola Financial Services were found to be non-compliant with RBI’s instructions on KYC requirements. Notices were also issued to these entities and the penalty was decided after considering their written replies. Further, 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 settlement application made during the hearing, RBI determined that Ola Financial Services’ violations could be mitigated. The Reserve Bank also said that the penalties are based on deficiencies in regulatory compliance.
