Fines of millions on PhonePe and M-Paisa, RBI action
Central Bank RBI on Friday imposed a fine on five prepaid payment instruments (PPI) insurers, including Vodafone M-Paisa and PhonePe. Apart from this, two American companies – Western Union Financial Services Inc. and MoneyGram Payment Systems Inc.
have also been penalized for not accepting guidelines. In a statement, the central bank said in a statement: “Under the rules of Section 30 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India (RBI) has imposed monetary penalty for not implementing guidelines on five PPI insurers.
Rs 1 crore on PhonePe and M-Paisa fined Rs 3 crore
Rs 3.05 crores on Vodafone M-Money and Rs 1 crores on mobile payments phonepay, private and GI technology. Apart from this, a penalty of 5 lakh rupees was levied on Y-Cash software solutions.
In a second statement, the RBI said that for violation of the rules, a penalty of Rs. 29,66,959 has been imposed on Western Union Financial Services Inc., USA and 10,11,653 rupees for MoneyGram Pemat Systems Inc. USA. RBI has fined Western Union and MoneyGram for violation under the provisions of the Payment and Settlement Systems Act, 2007.