RBI slaps Rs 1 crore fine on MobiKwik and Spice Money
One MobiKwik Systems Pvt Ltd – the parent company of MobiKwik – and Spice Money Ltd have both been punished for committing offenses of the nature specified in section 26(6) of the PSS Act.
The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 1 crore each on payment platforms MobiKwik and Spice Money. In a press statement, RBI said that these two payment service operators (PSOs) have been fined under the provisions of section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act). “These actions are based on deficiencies in regulatory compliance and are not intended to impinge on the validity of any transaction or agreement entered into by the entities with their customers,” RBI said.
One MobiKwik Systems Pvt Ltd – the parent company of MobiKwik – and Spice Money Ltd have both been punished for committing offenses of the nature specified in section 26(6) of the PSS Act.
According to section 26(6) of the PSS Act, if any person or company contravenes any provision of the Act, he can be punished with fine. Section 30 of the PSS Act, 2007 empowers RBI to impose penalty.
Section 30 states, “The Reserve Bank may impose on a person contravening or defaulting a fine not exceeding five lakh rupees or twice the amount involved in such contravention or omission, where such amount is quantifiable, whichever is higher.” “
Any penalty imposed by RBI under section 30 of the PSS Act shall be payable within a period of 30 days from the date on which the notice was issued by the Reserve Bank.
RBI said that it has been observed that One MobiKwik Systems Pvt Ltd and Spice Money Ltd did not comply with the directions issued by RBI on net worth requirement for Bharat Bill Payment Operating Units (BBPOUs). “As these were offenses of the nature mentioned in section 26(6) of the PSS Act, notices were issued to the entities,” the RBI statement said.
The RBI imposed the penalty after reviewing the written responses and oral submissions by both the entities during the personal hearing. The central bank concluded that the allegations of non-compliance were substantiated and warranted imposition of monetary penalties.
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