Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
3 May 2019
Case Brief
The Reserve Bank of India imposed monetary penalties on five Prepaid Payment Instrument (PPI) issuers for non-compliance with regulatory guidelines. The action was taken under Section 30 of the Payment and Settlement Systems Act, 2007. The entities named in the release are My Mobile Payments Limited, Phonepe Private Limited, Y-Cash Software Solutions Private Limited, Vodafone m-pesa Limited, and GI Technology Private Limited. The penalties listed in the press release were ₹100 lakh, ₹100 lakh, ₹5 lakh, ₹305 lakh, and ₹100 lakh respectively.
Why RBI Acted
In exercise of powers under Section 30 of the Payment and Settlement Systems Act, 2007, RBI imposed monetary penalties on five Prepaid Payment Instrument (PPI) issuers for non-compliance with regulatory guidelines. The named entities are My Mobile Payments Limited, Phonepe Private Limited, Y-Cash Software Solutions Private Limited, Vodafone m-pesa Limited, and GI Technology Private Limited. Penalty amounts ranged from ₹5 lakh to ₹3.05 crore, with the highest listed amount being ₹305 lakh for Vodafone m-pesa Limited.
Operating Impact
Each of the five PPI issuers must absorb the financial penalty and address the compliance deficiencies that led to RBI action. The penalty does not itself state an operational restriction, but it signals regulatory non-compliance and may affect supervisory scrutiny going forward.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 22 Oct 2018
- Entities Affected
- 5
- Entity Role
- Bulk Member
- Entity Type
- Payment entity
Related Entities
Entities similar to Y-Cash Software Solutions Private Limited