Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
3 May 2019
Case Brief
By orders dated April 20, 2018, the Reserve Bank of India imposed monetary penalties on Western Union Financial Services Inc., USA and MoneyGram Payment Systems Inc., USA. The penalties were for non-compliance of regulatory guidelines and were imposed under Section 31 of the Payment and Settlement Systems Act, 2007 for compounding of contraventions.
Why RBI Acted
RBI imposed monetary penalties on Western Union Financial Services Inc., USA and MoneyGram Payment Systems Inc., USA for non-compliance of regulatory guidelines. The penalties were imposed under Section 31 of the Payment and Settlement Systems Act, 2007 for compounding of the contraventions.
Operating Impact
Western Union Financial Services Inc. and MoneyGram Payment Systems Inc. are required to bear the respective monetary penalties imposed by RBI. The action is punitive and does not indicate a broader operating restriction beyond the fine itself.
Regulatory Basis
- Section 31 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 20 Apr 2018
- Effective From
- 20 Apr 2018
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- Payment entity
Related Entities
Entities similar to MoneyGram Payment Systems Inc