RBI imposes monetary penalty on payment operators One Mobikwik, Spice Money

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The Reserve Bank of India (RBI) on December 23 said it has imposed monetary penalty on two payment system operators - One Mobikwik Systems Private Limited and Spice Money Limited - for violation of norms.

Both the payment companies have been slapped with a fine of Rs 1 crore, as per the order issued by the central bank.

In a statement, the RBI said it has imposed the penalty on the two payment system operators for "committing offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS

Act)."

The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 30 of the PSS Act, it said.

"These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers," the statement noted.

Explaining the decision behind penalising One Mobikwik and Spice Money, the RBI said both the payment operators had not complied with the directions issued by the central bank on "net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs)".

After they were served notices for the alleged offence, One Mobikwik and Spice Money submitted their response to the Reserve Bank.

"After reviewing 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," the central bank said.