The Reserve Bank of India has decided to tighten scrutiny of the processes followed by financial technology or Fintech companies.
New Delhi. Not following the rules made by the Reserve Bank of India has cost Ola Financial Services, Manappuram Finance and Visa Private Limited heavily. The central bank has imposed heavy fines on all three fintech companies for regulatory violations. The highest fine has been imposed on Visa. The company will have to pay a penalty of Rs 2.4 crore.
Ola Financial Services has been fined Rs 87.55 lakh. The company has been fined Rs 33.40 lakh for not following KYC provisions. At the same time, a fine of Rs 54.15 lakh has been imposed due to lack of compliance with the provision related to payment and settlement system.
Manappuram Finance will have to pay a fine of Rs 41.50 lakh
The Reserve Bank has imposed a fine of Rs 41.50 lakh on Manappuram Finance. The fine has been imposed on Manappuram Finance due to lack of compliance with KYC rules. The Reserve Bank said that Manappuram Finance failed to properly comply with the provisions issued by it on KYC (Know Your Customer). Due to this, RBI has decided to impose a fine.
Visa will have to pay a fine of Rs 2.4 crore
The Reserve Bank has imposed a fine of Rs 2.4 crore on Visa Private Limited, a multinational payment processing company. Visa was accused of implementing a payment authentication solution without regulatory approval from the Reserve Bank. According to a Reuters report, in February, the RBI ordered the credit card company to stop using unauthorized routes to make certain commercial payments.
Assurance of compliance
Visa said in a statement after the RBI action that it respects and fully follows compliance guidelines, regulations and local rules of all the countries in which it operates. A Visa spokesperson said in a statement, “We accept the RBI order and are committed to complying with RBI guidelines and regulations to continue providing secure payment solutions in India.”
