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.

ALSO READ: Rules related to IPO changed, single window and MPS rules for foreign investors relaxed

Rbi imposes penalty: On behalf of the RBI, Kotak Mahindra Bank, IDFC Bank and Punjab National Bank have been fined and have been fined. RBI said that they had to take these steps due to some flaws in regulatory compliance. A statement issued by the central bank said that in addition to guidelines on the loan system for bank loan distribution, banks have imposed a penalty of Rs 61.4 lakh for not following some guidelines on loan and advance, statutory and other restrictions.

In another statement, RBI said that a fine of Rs 38.6 lakh has been imposed on IDFC Bank for not following some of KYC (KNOW Your Customer).

RBI action

Apart from this, a penalty of 29.6 lakh has been imposed on the Punjab National Bank on behalf of the Central Bank. This has been done by RBI due to non -compliance of the instructions issued on these banks.

In these three cases, the central bank said that this punishment has been done on deficiencies in regulatory compliance and it is not aimed at deciding the validity of any transaction or agreement made by the banks with its customers.

RBI instructions on deposits, accounts

The RBI said on Thursday that banks can open/close the rupee account (interest free) in the name of their foreign branches or representatives without informing the central bank. However, the apex bank said in the ‘Master’ directive issued on the deposit and account that the RBI will need special approval to open money accounts in the name of branches of Pakistani banks operated outside Pakistan.

It further states that depositing in the account of a migrant bank is an approved method of payment to migrants. Therefore, it is subject to the rules applied to transfer to foreign currency. RBI said that withdrawal from a migrant bank account is actually a remittance of foreign currency.

On the funding of migrant banks, RBI said that banks can buy foreign currency independently at the market rates from their foreign representatives/branches to keep the amount in their accounts to meet their real needs in India. However, the transactions in the accounts should be strictly monitored to ensure that foreign banks do not adopt a betting view on Indian rupees. Any such case should be reported to the Reserve Bank.

Also read: Stock market closed today on Good Friday, is the bank open in your states? Check full list