RBI imposes Rs 5 lakh penalty on fintech firm Obopay Mobile Technology

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5,93,000 on fintech company Obopay Mobile Technology India Private Limited for failing to meet certain Know Your Customer (KYC) standards set by the central bank.

The sanction was imposed in exercise of the powers conferred on RBI under Section 30 of the Payments and Settlement Systems Act 2007. by the entity with its customers,” RBI said.

According to RBI, it was observed that the entity was not complying with the instructions issued on KYC requirements. Accordingly, a notice was sent to the entity advising it to justify why a penalty should not be imposed in the event of non-compliance with the instructions.

After reviewing the entity’s response, RBI has concluded that the above charge of non-compliance with RBI’s instructions is valid and warrants the imposition of a monetary penalty.

Last month, RBI imposed a fine of Rs 1.68 crore on Ola Financial Services Pvt. ltd. for non-compliance with certain provisions of the banking regulator and Know Your Customer (KYC) directives.

It was also revealed that the sanction was imposed in the exercise of the powers given to RBI under Section 30 of the Payments and Settlement Systems Act 2007.

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