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 a fine of Rs.5,93,000/- (five lakh ninety three thousand rupees only) on Obopay Mobile Technology India Private Limited (the Entity) for failing to comply with certain provisions of the Master Instrument Instructions Prepaid Payments (PPI) ) dated 27 August 2021 (as updated from time to time) and Principal Directive – Know Your Customer (KYC) 2016 dated 25 February 2016 (as updated from time to time) .

Pursuant to the authority granted to the RBI by Section 30 of the Payments and Settlement Systems Act 2007, the fine was imposed. This action plan is based on deficiencies in regulatory compliance and is not intended to rule on the legality of any transaction the company has entered into with its customers.

Background

The entity was found to be in violation of RBI instructions regarding KYC requirements. Consequently, a notice was sent to the entity asking it to justify the reasons why no sanction should be applied in the event of non-compliance with the instructions.

The entity’s response was considered and the RBI came to the conclusion that the above-mentioned accusation of non-compliance with the RBI’s instructions was well founded and warranted the imposition of a financial sanction.

Comments are closed.