According to reports, the Reserve Bank of India has imposed fines on payment system operators Visa Worldwide, Ola Financial Services and Manappuram Finance for deficiencies in regulatory compliance.

The central bank has imposed a penalty of Rs 2.4 crore on Visa Worldwide Pte Limited and Rs 41.5 lakh on Manappuram Finance Limited. Ola Financial Services has been fined for Rs 33.40 lakh and Rs 54.15 lakh for two separate violations.

Ola Financial Services was fined Rs 33.40 lakh for breaking Know Your Customer (KYC) guidelines, and Visa Worldwide was punished for not following instructions.

The Payment and Settlement Systems Act, 2007 stipulates that regulatory compliance problems are the reason for the imposition of the second fine, which amounts to Rs 54.15 lakh.

According to the RBI, Manappuram Finance and Ola Financial Services, two Payment System Operators (PSOs), have been hit with financial penalties for breaking some of the Know Your Customer (KYC) guidelines.

Additionally, two Ola Financial Services and Visa Worldwide were given compounding orders for breaking specific rules.

The Reserve Bank of India provided specifics, stating that it was noted that Visa Worldwide Pte Limited had established a payment authentication system without the central bank's regulatory approval.

Visa Worldwide was served with a formal notice demanding an explanation as to why the noncompliance with the instructions should not result in the imposition of a penalty. Visa Worldwide then filed a request for the offense to be compounded. The RBI came to the conclusion that the offense qualifies for compounding after reviewing the compounding request and all of the points made at the hearing.

The RBI went on to say that it was discovered that Ola Financial Services and Manappuram Finance Limited had violated the KYC regulations. In some cases, there have also been notices served for noncompliance.

After a careful review of their initial contributions and written responses, penalties were applied. The central bank further revealed that Ola Financial Services had filed a compounding.