The Reserve Bank of India (RBI) has taken major action against three major companies related to the finance sector. RBI has imposed fines on Ola Financial Services, Manappuram Finance and Visa Worldwide. This action has been taken against these companies due to violation of various rules and provisions.
The highest fines imposed on visas
The heaviest fine has been imposed on Visa. The Reserve Bank has imposed a fine of Rs 2.4 crore on Visa Worldwide Private Limited, a multinational payment processing company. Visa was accused of implementing a payment authentication solution without regulatory approval from the Reserve Bank.
Visa said it respects the rules
A Visa spokesperson said in a statement that Visa respects and fully follows compliance guidelines, regulations and local rules of all the countries in which it operates. The company acknowledged the action taken by the RBI and said that it will follow the rules and regulations set by the Reserve Bank in India and will continue to provide secure payment solutions.
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Ola Financial fined more than 87 lakhs
RBI informed about these actions in separate orders on Friday. According to an order of RBI, Ola Financial Services has been fined more than Rs 87.50 lakh. The company has been fined Rs 33.40 lakh in one case. This fine is for not complying with the provisions of KYC. Apart from that, another fine of Rs 54.15 lakh has also been imposed due to lack of compliance with the provision related to payment and settlement system.
41.50 lakh fine imposed on Manappuram Finance
Similarly, the Reserve Bank has imposed a fine of Rs 41.50 lakh on Manappuram Finance. The action taken against Manappuram Finance is due to lack of compliance with KYC rules. RBI has said that Manappuram Finance failed to properly comply with the provisions issued by it on Know Your Customer (KYC). Due to this, RBI has decided to impose a fine.
