Recorded RBI impact
Fine: Rs 5.93 L
Monetary penalty · Fresh imposition
Published by RBI
18 Aug 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 5,93,000 on Obopay Mobile Technology India Private Limited for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments and the Master Direction – Know Your Customer (KYC) Direction. RBI said the action was taken under Section 30 of the Payment and Settlement Systems Act, 2007 after it observed deficiencies in regulatory compliance, issued a show-cause notice, and concluded that the charge of non-compliance was substantiated.
Why RBI Acted
RBI found that Obopay Mobile Technology India Private Limited was non-compliant with certain provisions of the Master Directions on Prepaid Payment Instruments dated August 27, 2021 and the Master Direction – Know Your Customer (KYC) Direction, 2016. The penalty was imposed under Section 30 of the Payment and Settlement Systems Act, 2007 after RBI issued a show-cause notice and considered the entity’s response.
Operating Impact
Obopay Mobile Technology India Private Limited must absorb the monetary penalty and ensure future compliance with RBI’s PPI and KYC requirements. The order does not state any suspension or operational restriction, but it signals heightened regulatory scrutiny over the entity’s compliance controls.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 5.93 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity