RBI imposes 29 Lakhs Monetary Penalty on Unimoni

RBI imposes 29 Lakhs Monetary Penalty on Unimoni The Reserve Bank of India (RBI) imposed a monetary penalty of Rs.29,79,000/- (Rupees twenty-nine lakh seventy-nine thousand only) on Unimoni Financial Services Limited (the entity) for failing to follow the instruction contained in paragraph 9.1(i) of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI MD) dated October 11, 2017. (as updated on November 17, 2020). 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 entity with its consumers.

Background

It was observed that the entity was non-compliant with the directions issued by RBI on small-PPI requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions. After considering the entity’s response and giving it a personal hearing, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.