The RBI has imposed fines on 5 Prepaid Payment Instrument issuers for violating the regulatory norms of the institution.
According to RBI’s statement, a penalty of Rs 3.05 crore was imposed on Vodafone m-pesa and Rs 1 crore each on Mobile Payments, PhonePe, Private and GI Technology.
The RBI has also imposed fines on two US companies. The Western Union Financial Services and MoneyGram Payment Systems have been fined for non-compliance of rules.
A penalty of Rs 29,66,959 was imposed on Western Union and Rs 10,11,653 on MoneyGram Payment Systems.
Prepaid payment instruments are methods that facilitate purchase of goods and services against the value stored on such instruments.
The prepaid instruments can be issued as smart cards, magnetic stripe cards, internet accounts, online wallets, mobile accounts and any such instruments used to access the prepaid amount.
There are about 77 authorized prepaid payment instruments registered in India.