On 3rd of May 2019 the RBI (Reserve Bank of India) said it has forced penalties totalling ₹6.10 crore on five Prepaid Payment Instrument (PPI) Issuers, which includes My Mobile Payments, PhonePe, Y-Cash Software Solutions, Vodafone m-pesa, and GI Technology for resistance with regulatory guidelines.
“In exercise of powers vested under Section 30 of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India has imposed monetary penalty on the following five PPI Issuers for non-compliance of regulatory guidelines.” RBI said.
Among the five Prepaid Payment Instrument (PPI) Issuers, the most elevated punishment has been forced on Vodafone m-pesa (₹3.05 crore). Whereas the PhonePe it is Rs 1 crore, My Mobile Payments Limited has been punished Rs 1 crore, Y-Cash Software Solutions Private Limited Rs 5 lakh and GI Technology Private Limited has likewise been punished Rs 1 crore.
In another announcement, the RBI said it has forced punishment of₹29, 66,959 and ₹10, 11,653 on Western Union Financial Services Inc, USA, and MoneyGram Payment Systems Inc, USA, individually, for resistance of administrative rules.
“These penalties have been imposed in exercise of the powers vested in RBI under the provisions of Section 31 of the Payment and Settlement Systems Act 2007 for compounding of the contraventions,” the RBI further added.
The rules are expressed that inability to consent to the regulations would bring about a punishment which must be paid in 30 days of the request being passed.