The Reserve Bank of India (RBI) has imposed a fine on violation of rules on five companies issuing prepaid payment instrument (PPI) with Vodafone M-pesa and Phonepe. Apart from this, US companies Western Union Financial Services Inc. and MoneyGram Payment Systems Inc. have also been penalized for not following guidelines.
The central bank issued the statement saying, “Using the powers received under Section 30 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India has not been able to comply with regulatory guidelines against five companies issuing PPIs Monetary penalty has been imposed. ‘
RBI has imposed a penalty of Rs 3.05 crore on Vodafone M-pesa. Apart from this, a penalty of one crore rupees has been imposed on mobile payments, PhonePe, Private and GI Technology. Y Cash Software Solutions has been fined Rs. 5 lakhs.
In another statement, the RBI has said that it has imposed a fine of Rs 29,66,959 on Western Union Financial Services Inc., US and Rs 10,11,653 on MoneyGram Payment Systems Inc., USA.