Recorded RBI impact
Fine: Rs 30.5 L
Monetary penalty · Fresh imposition
Published by RBI
24 Aug 2023
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 30,50,000 on Paul Merchants Finance Private Limited under Section 30 of the Payment and Settlement Systems Act, 2007. RBI said the company had not complied with certain provisions of the Master Directions on Prepaid Payment Instruments and, in particular, with directions on loading limits for Small PPIs. After considering the entity's response to the show-cause notice, RBI concluded that the charge was substantiated and warranted the penalty.
Why RBI Acted
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 after finding that Paul Merchants Finance Private Limited was non-compliant with certain provisions of the Master Directions on Prepaid Payment Instruments dated August 27, 2021 (updated November 12, 2021). The observed deficiency related to non-compliance with RBI directions on loading limits pertaining to Small PPIs.
Operating Impact
Paul Merchants Finance Private Limited must absorb the monetary penalty and ensure future compliance with RBI's PPI directions, especially the loading-limit requirements for Small PPIs. The order does not invalidate customer transactions or agreements, but it underscores continued regulatory scrutiny of its payments operations.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 30.5 L
- Order Date
- 27 Aug 2021
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity