RBI fines Payment Operators

Tags: Economics/Business

• The Reserve Bank of India (RBI) has  imposed a penalty of ₹1 crore each on payment system operators One Mobikwik Systems Private Ltd. and Spice Money Ltd. for deficiencies in regulatory compliance.
•  These  two entities had not complied with the directions issued by the Reserve Bank on net-worth requirements for Bharat Bill Payment Operating Units (BBPOUs).
• According to RBI the minimum net worth of a  Bharat Bill Payment Operating Units (BBPOUs) shall be Rs 100 crore ,which has to be maintained all time.
• Under The payment and settlement act 2007 ,RBI is the regulator of the Payment operators and has the power to fine them if they do not follow the rules and regulation of RBI 

NOTE 

• The Bharat Bill Payment System (BBPS) is an interoperable platform for repetitive bill payments, and currently covers five segments -- direct-to-home (DTH), electricity, gas, telecom, and water bills.
• Banks or NBFC (Non Banking Finance Company) who have received licence from RBI  can offer these services through the BBPS and they are called as BBPOUs or Payment operators .