RBI Fines Visa, Ola Financial, Manappuram Finance For Regulatory Compliance Issues

The RBI has levied penalty on payment system operators Visa Worldwide, Ola Financial Services, and Manappuram Finance for regulatory compliance issues.

Visa Worldwide Pte. has been fined Rs 2.4 crore, while Manappuram Finance Ltd. faces a penalty of Rs 41.5 lakh. Ola Financial Services has been hit with a total fine of Rs 87.55 lakh across two cases.

The penalties against Manappuram Finance and Ola Financial Services are due to their failure to adhere to specific Know-Your-Customer regulations.

Compounding orders were also issued to Ola Financial Services and Visa Worldwide for contravention of certain provisions.

Giving details, the Reserve Bank of India said it was observed that Visa Worldwide had implemented a payment authentication solution without regulatory clearance from the central bank. Accordingly, a notice was issued to it, advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions.

Visa Worldwide, in its response, had filed an application for compounding of the violation.

After analysing the compounding application and oral submissions made during the personal hearing, the RBI determined that the contravention could be compounded.

“Visa respects and abides by the compliance guidelines, regulations and local laws across the countries we operate in. We duly acknowledge the RBI order and remain committed to following RBI guidelines and regulations to continue providing safe and secure payment solutions in India,” the company said in a statement on Friday.

Manappuram Finance and Ola Financial Services were non-compliant with the directions issued by the RBI on KYC requirements, the central bank said. In these cases also, notices were issued.

Penalties were imposed after considering their written responses and the oral submissions.

The RBI said Ola Financial Services had also reported instances of shortfall in the balance in its escrow account and filed an application for compounding of the violation.

After analysing the compounding application and oral submissions made during the personal hearing, the RBI determined that Ola Financial Services' contravention can be compounded.

The central bank also said the penalties are based on deficiencies in regulatory compliance and are not intended to be pronounced upon the validity of any transaction or agreement entered into by the entity with its customers.

(With Inputs From PTI)