RBI fines Future group subsidiary LivQuik

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, said RBI (Shrikant Singh) — 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, said RBI **(Shrikant Singh)**

2 min read . Updated: 08 Mar 2022, 05:22 PM IST Gopika Gopakumar

In 2018, Future group had picked up 55% stake in LivQuik, which operates the QuikWallet mobile app

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Mumbai: The Reserve Bank of India has imposed a penalty of ₹14.83 lakh on Future Group-backed payments technology company LivQuik Technology for non-compliance with rules around net worth requirement for pre-paid instruments.

“The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007. 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," said RBI in its press release.

Founded in 2012 by Mohit Lalvani and Yudhajit Nag Sen, LivQuik is an RBI-approved prepaid payment instrument issuer and a full-fledged money changer (FFMC). It provides prepaid products such as mobile wallets, virtual, physical contactless & EMV chip cards, and multiple types of prepaid instruments like a gift, meal, fleet and/or expense management. It also offers payment gateway and enterprise fintech software development services, and has been managing the Future Pay platform, the flagship loyalty and payments app of Future Group.

In 2018, Future group had picked up 55% stake in LivQuik, which operates the QuikWallet mobile app.

The group has been facing acute cash shortage for the past two years.

In August 2020, Reliance Industries had entered into an agreement with cash-strapped Future group to purchase the latter’s retail assets for ₹24,731 crore. However, this deal got caught in a legal tussle after Amazon objected to it on the grounds that a contract signed between Future Coupons Pvt. Ltd and Amazon in August 2019 required Future Group to take Amazon’s prior consent for the sale of its retail assets.

Future group has been defaulting on payments to lenders and has been finding it difficult to keep the stores open due to a cash crunch. Recently, Reliance started taking over 200 stores of Future Retail after it failed to make lease payments.

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