RBI put Rs 5 lakh Penalty on Oxigen Services

November 08, 2019
Current context: The Reserve Bank of India (RBI) has imposed a fine of Rs 5 lakh on prepaid payment instrument Oxigen Services (India) Private Limited.
RBI put Rs 5 lakh Penalty on Oxigen Services 
  • The penalty has been imposed for non-compliance of RBI’s regulatory guidelines. However, it didn’t mention the exact area it failed to comply with.
  • The move was taken in exercise of powers vested under Section 30 of the Payment and Settlement Systems Act, 2007.
  • The fine comes through a speaking order dated 17th September 2019.
  • Oxigen Services is a Prepaid Payment Instrument (PPI) issuer and facilitates payment processing and money transfer services.
  • PPIs are instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments.

Question: 

Q.1 Choose the correct statement about Prepaid Payment Instrument (PPIs)? 
1. PPIs facilitate purchase of goods
2. PPIs facilitate purchase of Services 

a. Only 1
b. Only 2
c. Both 1 and 2
d. None of the above

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