RBI imposes penalty on One Mobikwik Systems, Spice Money

The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore each on payment system operators One Mobikwik Systems Private Ltd and Spice Money Ltd for deficiencies in regulatory compliance.

As these were offences of the nature referred to in a Section of the Payment and Settlement Systems Act, 2007, notices were issued to the entities. Pic: Reuters

The Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore each on payment system operators One Mobikwik Systems Private Ltd and Spice Money Ltd for deficiencies in regulatory compliance.

Giving details, the central bank said it observed that the two entities had not complied with the directions issued by the RBI on networth requirement for Bharat Bill Payment Operating Units (BBPOUs).

As these were offences of the nature referred to in a Section of the Payment and Settlement Systems Act, 2007, notices were issued to the entities.

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"After reviewing their written responses and the oral submissions made during the personal hearing, the RBI concluded that the aforesaid charges of non-compliance with the RBI directions were substantiated and warranted imposition of monetary penalty," it said.

The RBI, however, added that the penalties 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.

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Reserve Bank of India (RBI)Mobikwik Spice Money