The Reserve Bank of India (RBI) has imposed a penalty of 24.1 million rupees (nearly $288,000) on Visa (V.N) for using an unauthorized payment transfer method, the central bank announced on Friday.
“It was observed that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from RBI,” the central bank stated, without providing further details on the transgression.
In response, a Visa spokesperson said, “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.”
In February, the RBI had ordered Visa to stop using an unauthorized route for certain commercial payments, according to a Reuters report.
The central bank has been increasing its scrutiny of the processes followed by financial technology (fintech) companies.