Recorded RBI impact
Fine: Rs 29.8 L
Monetary penalty · Fresh imposition
Published by RBI
12 May 2022
Case Brief
The Reserve Bank of India penalized Unimoni Financial Services Limited for violating paragraph 9.1(i) of the Master Direction on Issuance and Operation of Prepaid Payment Instruments. RBI said the entity was non-compliant with its directions on small-PPI requirements; after issuing a show-cause notice, considering the response, and providing a personal hearing, it concluded that the breach was substantiated and imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007.
Why RBI Acted
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 because Unimoni Financial Services Limited was found non-compliant with the instruction contained in paragraph 9.1(i) of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (dated October 11, 2017, updated November 17, 2020). The background notes that the entity did not comply with RBI directions on small-PPI requirements; after a show-cause notice, response, and personal hearing, RBI concluded the charge was substantiated and warranted penalty.
Operating Impact
The company must absorb the monetary penalty and remain compliant with RBI’s PPI directions going forward, especially the small-PPI requirements under the relevant Master Direction. The order does not invalidate customer transactions or agreements, but it signals regulatory scrutiny over its PPI operations.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 29.8 L
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Payment entity