The Reserve Financial institution of India (RBI) has imposed a financial penalty of Rs2.44 lakh on Spice Cash for contravention of/non-compliance with sure provisions of the instructions issued by RBI contained within the Grasp Path on Issuance and Operation of PPIs in India.
RBI stated that the penalty has been imposed within the train of powers vested in RBI beneath the provisions of Part 30 of the Fee and Settlement Techniques Act, 2007. This motion relies on deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the entity with its prospects.
RBI had seen that the corporate was non-compliant with the instructions issued on the upkeep of the escrow account steadiness. Accordingly, discover was issued to the entity advising it to point out trigger as to why a penalty shouldn’t be imposed for non-compliance with the instructions.
After contemplating the entity’s written responses and oral submissions made throughout the private hearings, RBI concluded that the aforesaid fees of non-compliance with RBI instructions have been substantiated and warranted the imposition of financial penalty.