The Reserve Bank of India imposed a penalty of 24.1 million rupees (almost $288,000) on Visa for using an unauthorised payment transfer mechanism, the central bank announced Friday.
“It was discovered that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from the RBI,” the central bank said in a statement, without providing any specifics on the violation.
The statement further read, “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.”
According to Reuters, the RBI ordered the credit card business in February to stop utilising an illegal route to make certain commercial payments.
The central bank intends to increase oversight of the methods used by financial technology, or fintech, companies.
(with inputs from Reuters)