The Reserve Bank of India (RBI) on May 3, slapped penalties on five Prepaid Payment Instrument (PPI) issuers and two remittance service providers for non-compliance of regulatory norms.
The banking regulator imposed a penalty of Rs 3.05 crore on Vodafone m-pesa and Rs 1 crore each on PPIs like Phonepe, GI Technology and My Mobile Payments. A penalty of Rs 5 lakh was also levied on Y-Cash Software Solutions.
"This is an old matter for which we had represented to the RBI clarifying our position. We also deposited the amount as directed by RBI. We are committed to operating the business in full compliance with all applicable rules," Vodafone said in a statement.
Remittance service providers like Western Union Financial Services and MoneyGram Payment Systems were penalized for Rs 29.67 lakh and Rs 10.12 lakh, respectively.
"These penalties have been imposed in exercise of the powers vested in RBI under the provisions of Section 31 of the Payment and Settlement Systems Act, 2007 for compounding of the contraventions," the RBI said in a statement.
Story updated with comment from Vodafone.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
