RBI slaps Rs 1 crore fine on One MobiKwik Systems, Spice Money
Highlight
- RBI imposed a penalty of Rs 1 crore each on payment system operators One MobiKwik, Spice Money.
- RBI said that 2 entities have not complied with the directions issued on net worth requirement for BBPOUs
- However, RBI said the penalty is based on deficiencies in regulatory compliance
The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore each on payment system operators One MobiKwik Systems Pvt Ltd and Spice Money Ltd for deficiencies in regulatory compliance.
Giving details, the central bank said it observed that both the entities did not comply with the directions issued by RBI on net worth requirement for Bharat Bill Payment Operating Units (BBPOUs).
As these were offenses of the nature specified in a section of the Payment and Settlement Systems Act, 2007, notices were issued to the entities.
“After reviewing their written responses and oral submissions during the personal hearing, RBI concluded that the above allegations of non-compliance with RBI’s directions were substantiated and warranted imposition of monetary penalty,” it said.
RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by entities with their customers.
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