RBI Slaps Fines on Visa, Ola Financial, and Manappuram for KYC Violations: What You Need to Know

MUMBAI: The Reserve Bank of India (RBI) fined Ola Financial Services, Manappuram Finance, and Visa Worldwide Pte Ltd on Friday for not following Know Your Customer (KYC) rules and other regulations.

Ola Financial Services received two fines. The first fine of Rs 33.40 lakh was for not following KYC directions. The second fine of Rs 54.15 lakh was for not complying with the Payment and Settlement Systems Act, 2007.

Manappuram Finance was fined Rs 41.50 lakh for not following KYC rules.

The RBI stated in a press release, “Both Ola Financial Services and Manappuram Finance did not comply with the directions issued by the RBI on KYC requirements.”

Additionally, Ola Financial Services had reported a shortfall in the balance in its escrow account and requested the RBI to compound the violation. After reviewing the application and oral submissions, the RBI decided that the violation could be compounded.

Visa Worldwide Pte Ltd was fined Rs 2.4 crore for implementing a payment authentication solution without RBI’s regulatory clearance.

The RBI issued compounding orders to Ola Financial Services Pvt. Ltd. and Visa Worldwide Pte. Ltd. for breaking certain rules in the Master Directions on Prepaid Payment Instruments (PPIs) and Card Not Present transactions.

Visa stated that it respects and follows the rules set by regulators. A Visa spokesperson said, “Visa respects and abides by the compliance guidelines, regulations, and local laws across the countries we operate in. We acknowledge the RBI order and remain committed to following RBI guidelines and regulations to continue providing safe and secure payment solutions in India.”