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Team Studycafe | Aug 19, 2022 | Views 2

RBI imposes monetary penalty on Obopay Mobile Technology India Private Limited

RBI imposes monetary penalty on Obopay Mobile Technology India Private Limited

The Reserve Bank of India (RBI) has imposed monetary penalty of Rs.5,93,000/- (Rupees five lakh ninety-three thousand only) on Obopay Mobile Technology India Private Limited (the entity) for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (as updated from time to time) and the Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time).

In accordance with the authority granted to the RBI by Section 30 of the Payment and Settlement Systems Act of 2007, the fine has been levied. This course of action is based on regulatory compliance shortcomings and is not meant to rule on the legality of any deal the company has made with its clients.

Background

The entity was found to be in violation of the RBI’s instructions regarding the requirements for KYC. As a result, a notice was sent to the entity instructing it to give justification as to why no penalty should be applied for failing to follow the instructions.

The entity’s response was taken into account, and the RBI came to the conclusion that the aforementioned charge of failing to follow RBI instructions was true and required the imposition of a financial penalty.

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