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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UPI transactions in India: How the trend of people has increased rapidly towards digital payment, you can guess from the fact that in the month of May itself, a transaction of 18.68 billion has taken place. This is 4 percent higher than the month of April. Earlier, there was a transaction of 17.89 billion in April. If it is seen according to the currency, then it is a transaction of Rs 25.14 lakh crore in the month of May, which was Rs 23.95 crore in April a month ago.

33 percent increase on an annual basis

According to the National Payment Corporation of India, where this is an increase of 33 percent in UPI payment compared to last year, it has increased by about 14 percent more than in April. On an average, 602 million transactions have taken place in the month of May. Its total value is Rs 81,106 crore.

Significantly, UPI, which started in 2016 in the country, has received popularity, especially after the demonetisation. On the one hand, where the smartphone has reached the people fast, apps like Phone Pay, Google Pay and Paytm have further strengthened digital payments. In such a situation, UPI has increased its scope in digital payment.

UPI’s popularity increased rapidly

The total transaction during the financial year 2024-25 was 83.7 percent, which was 79.7 percent a year ago. The RBI said that by the next 2028-29, UPI will increase the scope of UPI in about 20 countries of the world. Already in Bhutan, France, Nepal, Mauritius, Singapore, Sri Lanka, the Indian UPI app is accepted through QR code. With this, it has become very easy to pay Indian students, tourists and businessmen through the UPI app.

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