Consider the following statements about Prepaid Payment

Solution

Prepaid Payment Instruments: Prepaid payment instruments are payment instruments that facilitate purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by cash, by debit to a bank account, or by credit card. The Prepaid instruments can be issued as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers and any such instruments which can be used to access the prepaid amount (collectively called Payment Instruments hereafter). RBI has imposed a monetary penalty of Rs 17.63 lakh on Manappuram Finance Limited for non-compliance of norms related to Know Your Customer (KYC) and Prepaid Payment Instruments (PPIs). The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 17,63,965 on Manappuram Finance Limited for non-compliance with certain provisions of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs) dated October 11, 2017 (updated as on February 28, 2020) and the Master Direction – Know Your Customer (KYC) Direction dated February 25, 2016 (as updated on April 20, 2020). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers. It was observed that the entity was non-compliant with the directions issued by RBI on KYC and small PPI requirements. Manappuram Finance Limited Headquarters: Thrissur, Kerala, CEO: V.P. Nandakumar