By Admin 
RBI imposes fin on phonepe: The Reserve Bank of India (RBI) has imposed a fine of Rs 21 lakh on Fintech Company Phone Pay. This action has been taken by the central bank for not following some norms related to prepaid payment instruments properly. RBI said that the company’s operation was statutory inspection in the period from October 2023 to December 2024.
Why run on the phone?
On the basis of inspection and correspondence, a notice was issued to the company and asked to give the reason. After considering the reply given by the phone and additional presentation, the RBI found the allegations correct and fined.
The RBI clarified that on several occasions in the company’s Escro account, the remaining amount was less than the prepaid payment products (PPI) and the amount payable to the traders and the information of this deficiency was not given to the RBI on time. However, the penalty is based only on the shortcomings of regulatory compliance and will not affect the company’s transaction or validity of agreements with customers.
Violation of rules earlier also
Significantly, the RBI has imposed a fine on the phone before. In the year 2019, a fine of Rs 1 crore was imposed for not following the rules related to foreign portfolio investor (FPI) and Rs 1.39 crore for violation of regulatory rules in 2020.
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