RBI Imposes Rs 1 Crore Penalty Each on Mobikwik and Spice Money
Moneylife Digital Team 23 December 2021
The Reserve Bank of India (RBI) on Thursday announced that it has imposed a monetary penalty of Rs 1 crore each on two payment system operators (PSOs) One Mobikwik Systems Private Limited and Spice Money Limited for violating certain norms of the banking regulator.
 
The penalty has been imposed on One Mobikwik and Spice Money for committing offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act), RBI explained in its official statement.
 
The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act. "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," RBI noted.
 
The central bank has explained that it has observed that One Mobikwik Systems Private Limited and Spice Money Limited had not complied with the direction issued by RBI on the net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs).
 
"As these were offences of the nature referred to in Section 26 (6) of the PSS Act, notices were issued to the entities," the RBI statement said.
Comments
Free Helpline
Legal Credit
Feedback