The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5,93,000 on the fintech firm Obopay Mobile Technology India Private Limited for non-compliance with certain Know Your Customer (KYC) norms set by the central bank.
The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. “This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers,” RBI said.
According to RBI, it was observed that the entity was non-compliant with the directions issued on KYC requirements. Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.
After considering the entity’s response, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty
Last month RBI had imposed a monetary penalty of Rs 1.68 crore on Ola Financial Services Pvt. Ltd. for non-compliance with the banking regulator’s certain provisions and Know Your Customer (KYC) guidelines.
It was also revealed that the penalty was imposed in the exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007.
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