RBI imposes monetary penalty on Manappuram Finance, Ola Financial Services

The monetary penalties comes in the backdrop of Manappuram Finance Limited and Ola Financial Services' non-compliance with RBI on KYC requirements.

The Reserve Bank of India (RBI) on July 26 imposed monetary penalty on three Payment System Operators (PSOs) for non-compliance with the directions issued by RBI on KYC requirements. The central bank has fined Rs 41.50 lakh to Manappuram Finance, Rs 87.55 lakh on Ola Financial Services Pvt. Ltd. and Rs 240.75 lakh on Visa Worldwide Pte. Limited.

The monetary penalties comes in the backdrop of Manappuram Finance Limited and Ola Financial Services' non-compliance with RBI on KYC requirements.

The central bank said that notices were issued to the entities advising them to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering their written responses and the oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

Further, Ola Financial Services Pvt. Ltd. had also reported instances of shortfall in the balance in its escrow account and filed an application for compounding of the violation. After analysing the compounding application and oral submissions made during the personal hearing, RBI determined that the aforementioned contravention can be compounded, it added.

In case of Visa Worldwide Pte. Limited, RBI said that it was observed that the entity had implemented a payment authentication solution without regulatory clearance from RBI. The entity in its response to show cause notice had filed an application for compounding of the violation. After analysing the compounding application and oral submissions made during the personal hearing, RBI determined that the aforementioned contravention can be compounded, RBI added.