RBI has imposed a monetary penalty of Rs.30,50,000 on Paul Merchants Finance Private Limited for failing to comply with certain terms of Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as of November 12, 2021).
Reetu | Aug 26, 2023 |
RBI imposed Monetary Penalty of Rs.30.5 Lakh on Paul Merchants Finance
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs.30,50,000 on Paul Merchants Finance Private Limited (the firm) for failing to comply with certain terms of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as of November 12, 2021).
The penalty was issued by the RBI in accordance with Section 30 of the Payment and Settlement Systems Act of 2007. This action is based on regulatory compliance problems and is not intended to rule on the legality of any transaction or arrangement entered into by the company with its consumers.
The firm was found to be in violation of the RBI‘s instructions on loading limits for Small PPIs. As a result, the organisation was served with a notice requiring it to show cause why a penalty should not be imposed for failing to follow the directives.
After evaluating the entity’s answer, the RBI found that the aforementioned accusation of non-compliance with RBI guidelines was proven and merited the imposition of a monetary penalty.
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