RBI imposes Monetary Penalty on three Payment System Operators
The actions have been taken in the exercise of powers vested in RBI under the provisions of Section 30 and Section 31 of the Payment and Settlement Systems Act, 2007.

The Reserve Bank of India (RBI) has imposed monetary penalties on the following two Payment System Operators (PSOs) for non-compliance with certain provisions of the Master Direction of KYC Directions, 2016 dated February 25, 2016.
Furthermore, as per the RBI, the orders were also issued to two PSOs i.e. Ola Financial Services Pvt. Ltd. and Visa Worldwide Pvt Limited, for contravention of certain provisions contained in the Master Directions of Prepaid Payments Interface, dated 27 August 2021 and Card Not Present transactions – Relaxation in Additional Factor of Authentication for payments upto Rs 2000/- for card network provided authentication solutions.
Join PSU Connect on WhatsApp now for quick updates! Click here

The above actions have been taken in the exercise of powers vested in RBI under the provisions of Section 30 and Section 31 of the Payment and Settlement Systems Act, 2007 and are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
Both entities were non-compliant with the directions issued by RBI on KYC requirements.
Further, Ola Financial Services Pvt. Ltd. had also reported instances of shortfall in the balance in its escrow account and applied compounding of the violation. After analyzing the compounding application and oral submissions made during the personal hearing, RBI determined that the aforementioned contravention can be compounded, the Central Bank stated.
Read Also : Secretary, MoPNG visited RE Pavilion at IEW 2025, hosted by HPCL
Visa Worldwide Private Limited-
As per the RBI statement, it was observed that the entity had implemented a payment authentication solution without regulatory clearance from RBI.
Accordingly, a notice was issued to the entity advising it to show cause as to why a penalty should not be imposed for non-compliance with the directions. The entity in its response had applied compounding of the violation. After analyzing the compounding application and oral submissions made during the personal hearing, RBI determined that the aforementioned contravention can be compounded, the bank added.
Read Also : Civil Construction PSU stock, NBCC witnessed Stock Decline over 4% amid market volatility