BENGALURU (Reuters) – India’s central bank said on Friday it had imposed a fine of 24.1 million rupees ($288,000) on Visa Inc for using an unauthorised method to transfer payments.
“It has been observed that the entity (Visa) has implemented a payment authentication solution without regulatory approval from the Reserve Bank of India,” the central bank said in a statement, without providing details about the violation.
“We are fully aware of the RBI order and remain committed to following RBI guidelines and regulations to continue offering secure payment solutions in India,” a Visa spokesperson said in a statement.
In February, the Reserve Bank of India ordered the credit card company to stop using an unauthorized method to make some merchant payments, Reuters reported.
The central bank aims to tighten scrutiny of the operations of financial technology companies, or fintech.
(1 USD = 83.6990 INR)