India's RBI slaps fine on Visa

INDIA's central bank has imposed a fine of $288,000 (more than £220,000) on Visa for using an unauthorised payment transfer method, reported Reuters.

The Reserve Bank of India (RBI) has announced the penalty on July 26, citing Visa's implementation of a payment authentication solution without regulatory approval.

The RBI did not provide specific details on the unauthorised method but emphasised the violation of regulatory protocols.

In a statement, the RBI said, "It was observed that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from RBI."

Visa responded to the penalty, stating, "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."

Earlier in February, the RBI had instructed Visa to cease using an unauthorised route for certain commercial payments, according to a Reuters report.

This move is part of the RBI's broader effort to enhance oversight of financial technology (fintech) companies.

According to reports, the central bank has been increasingly vigilant in scrutinising the practices of fintech firms to ensure compliance with regulatory standards and to maintain the integrity of the financial system.

The RBI action against Visa is the latest in the central bank's commitment to regulating payment solutions and protecting consumers.

The RBI enforces stringent guidelines to foster a secure and reliable payment ecosystem in the country.