The Reserve Bank of India (RBI) has imposed monetary penalties on two payment system operators (PSOs) for non-compliance with certain directions by the central bank.
The penalties have been imposed on Manappuram Finance Limited and Ola Financial Services Pvt. Ltd. for non-compliance with the Master Direction – Know Your Customer (KYC) Direction, 2016.
According to a statement by the RBI, both the organisations were non-compliant with the directions issued by RBI on KYC requirements. The RBI has issued a notice to the two companies asking them to show the reason why the penalty should not be imposed.
The RBI has also imposed a compounding order on Ola Financial Services Pvt. Ltd. for non-compliance with the Master Direction on Prepaid Payment Instruments (PPIs), dated August 27, 2021. The central bank said that Ola Financial Services Pvt. Ltd. had implemented a payment authentication solution without regulatory clearance from RBI. The RBI has issued a notice to the company asking it to show the reason why the penalty should not be imposed.