The Reserve Bank of India (RBI) has announced fines against Visa Worldwide Pte Limited, Ola Financial Services, and Manappuram Finance Limited for failing to adhere to regulatory guidelines.
Visa Worldwide has been penalized Rs 2.4 crore for not complying with RBI directions. The central bank revealed that Visa implemented a new payment authentication method without obtaining prior approval, which led to the penalty. Visa has acknowledged the fine and expressed its commitment to adhering to RBI regulations in the future.
Ola Financial Services has been fined a total of Rs 87.55 lakhs, divided into two separate penalties. The first penalty of Rs 33.40 lakh was for non-compliance with Know Your Customer (KYC) directions, while the second penalty of Rs 54.15 lakh was related to deficiencies under the Payment and Settlement Systems Act, 2007. Ola Financial has addressed the issues identified and has submitted requests for compounding of the violations.
Manappuram Finance has been fined Rs 41.5 lakh for failing to meet KYC requirements. The RBI’s action underscores its ongoing efforts to ensure that all financial institutions adhere to established guidelines to protect customers and maintain the integrity of the financial system.
The RBI’s penalties highlight its role in enforcing regulatory compliance and safeguarding the financial sector. The collected fines will be directed to the government, and the central bank continues to emphasize the importance of regulatory adherence in the financial industry.
Important points:
- The RBI has fined Visa, Ola Financial, and Manappuram Finance.
- The fines are for not following KYC rules and other regulations.
- The RBI wants to make sure that all companies follow the rules to protect customers.