The Reserve Bank of India (RBI) recently fined Visa ₹2.41 crore (about $288,000) for utilizing an unapproved payment transfer method. The central bank made this information public on Friday, highlighting that Visa had implemented a payment authentication mechanism without first gaining the necessary regulatory approval.
The RBI’s official statement noted, “It was observed that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from RBI.” However, the central bank did not elaborate on the specifics of the violation.
A Visa spokesperson responded to the penalty, saying, “We duly acknowledge the RBI order and remain committed to following RBI guidelines and regulations to continue providing safe and secure payment solutions in India.”
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According to a media source, the RBI ordered Visa to stop using an unauthorized channel for specific commercial payments in February, which is when the problem initially surfaced. This action is a component of the central bank’s larger plan to improve supervision of the operations of financial technology (fintech) enterprises.
The RBI has been keeping a close eye on the procedures and strategies used by fintech companies to make sure they fully comply with legal requirements. The objective of this examination is to protect the authenticity and safety of India’s financial system.
According to the most recent conversion rate, $1 is worth 83.6990 Indian rupees.
