RBI imposes penalty of Rs 1 cr each on One Mobikwik, Spice Money

'It was observed that the entities had not complied with the directions issued by RBI on net-worth requirement for Bharat Bill Payment Operating Units,' says RBI

Reserve Bank of India on Thursday imposed penalty of Rs 1 crore each on two payment system operators, One Mobikwik and Spice Money, for non-compliance of norms.

"RBI has imposed monetary penalty on two Payment System Operators (PSOs) for committing offences of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)," the central bank said in a statement.

The penalties have been imposed in exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act. "These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers," said RBI.

"It was observed that the above entities had not complied with the directions issued by RBI on net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs). As these were offences of the nature referred to in Section 26 (6) of the PSS Act, notices were issued to the entities. After reviewing their written responses and the oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty," added RBI.