BENGALURU (Reuters) – The Reserve Bank of India has imposed a penalty of 24.1 million rupees (approximately $288,000) on Visa (NYSE:) 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 in a release, without disclosing specific details of the violation.
“We acknowledge the RBI’s directive and are committed to adhering to RBI guidelines and regulations to ensure the provision of safe and secure payment solutions in India,” a Visa spokesperson commented in response.
In February, the RBI had instructed the credit card company to cease using an unauthorized route for certain commercial payments, as per a report by Reuters.
The central bank has been focusing on tightening scrutiny of the operations of financial technology (fintech) companies.
($1 = 83.6990 Indian rupees)