RBI corners 5 prepaid payment instrument issuers; Imposes heave penalty for non compliance of guidelines

Mumbai, May 4: Citing the violation of regulatory norms, the Reserve Bank of India on Friday said that it had imposed penalties on five prepaid payment instrument issuers, including Vodafone m-pesa and PhonePe. Also, penalties have been imposed on Western Union Financial Services Inc and MoneyGram Payment Systems Inc, both US firms, for non-compliance of guidelines.

 

 

The central bank in its statement said that a penalty of Rs 3.05 crore was imposed on Vodafone m-pesa and Rs 1 crore each on Mobile Payments, PhonePe, Private and GI Technology. Also, a penalty of Rs 5 lakh has been imposed on Y-Cash Software Solutions.

 

In another statement, the RBI said it has imposed penalty of Rs 29,66,959 and Rs 10,11,653 on Western Union Financial Services Inc, USA, and MoneyGram Payment Systems Inc, USA, respectively, for non-compliance of regulatory guidelines.

 

Penalty on Western Union and MoneyGram has been imposed by the RBI under the provisions of the Payment and Settlement Systems Act, 2007, for compounding of the contravention.