‘It was discovered that the firms had not followed RBI’s instructions on the net-worth criterion for Bharat Bill Payment Operating Units,’ according to RBI.

Two payment system operators, One Mobikwik and Spice Money, were fined Rs 1 crore apiece by the Reserve Bank of India on Thursday for violating standards.

“The Reserve Bank of India (RBI) has imposed monetary penalties on two Payment System Operators (PSOs) for violating Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act),” the central bank said in a statement.

The fines were imposed as a result of RBI’s power under Section 30 of the PSS Act to apply them. “These measures are based on regulatory compliance shortcomings and are not intended to invalidate any transaction or arrangement entered into by the companies with their customers,” RBI stated.

“The aforesaid firms were found to have disobeyed RBI’s instructions on the net-worth criterion for Bharat Bill Payment Operating Units (BBPOUs). Notices were issued to the entities because these were offences of the sort described in Section 26 (6) of the PSS Act. RBI found that the aforementioned charges of non-compliance with RBI orders were proved and merited imposition of monetary penalty after studying their written responses and oral arguments made during the personal hearing.”

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