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The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹30,50,000 (Rupees thirty lakh fifty thousand only) on Paul Merchants Finance Private Limited for non-compliance with provisions of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021, and updated on November 12, 2021.
The penalty has been levied under the powers conferred on RBI by Section 30 of the Payment and Settlement Systems Act, 2007, and arises from deficiencies in regulatory compliance. The action does not question the validity of any transactions or agreements entered into by the entity with its customers.
RBI’s examination revealed that the company was non-compliant with directions on loading limits for Small PPIs. The entity was issued a notice to show cause as to why a penalty should not be imposed. After considering its response, RBI concluded that the non-compliance was substantiated and warranted the monetary penalty.
This action underscores RBI’s continued efforts to ensure strict adherence to regulations governing digital payment systems and protect the interests of customers.
[RBI]