RBI imposes penalty on 5 payment system operators
The central bank has imposed a penalty of Rs 3 crore on Transaction Analysts (India) for non-compliance with its provisions related to escrow account balances, limits prescribed for certain transactions and KYC
- Aug 27, 2021,
- Updated Aug 27, 2021 9:57 PM IST
The Reserve Bank of India (RBI) has imposed fine on five payment system operators citing non-compliance with its norms on prescribed transaction limits and ATM deployment, among others.
The central bank has imposed a penalty of Rs 3 crore on Transaction Analysts (India) for non-compliance with its provisions related to escrow account balances, limits prescribed for certain transactions and KYC.
Besides Transaction Analysts (India), the central bank has also imposed monetary penalties on four White Label ATM Operators – Tata Communications Payment Solutions, Hitachi Payment Services, Vakrangee and BTI Payments citing non-compliance with RBI’s directions on ATM deployment and maintenance of net-worth.
The central bank unearthed non-compliance with the RBI directions approved monetary penalty on these entities after considering their written replies and oral submissions in personal hearings. Both Hitachi Payment Services and BTI Payments have been slapped with a fine of Rs 2 crore each. Tata Communications Payment Solutions and Vakrangee, on the other hand, have to pay a penalty of Rs 1 crore each.
The RBI has imposed all these penalties under the provisions of Section 30 of the Payment and Settlement Systems Act, 2007. “The penalties have been imposed in exercise of powers vested in RBI under the provisions of 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 entities with their customers,” the RBI noted in its official press release on the same.
Edited by Mehak Agarwal
Also read: RBI fines two co-op banks, one NBFC
The Reserve Bank of India (RBI) has imposed fine on five payment system operators citing non-compliance with its norms on prescribed transaction limits and ATM deployment, among others.
The central bank has imposed a penalty of Rs 3 crore on Transaction Analysts (India) for non-compliance with its provisions related to escrow account balances, limits prescribed for certain transactions and KYC.
Besides Transaction Analysts (India), the central bank has also imposed monetary penalties on four White Label ATM Operators – Tata Communications Payment Solutions, Hitachi Payment Services, Vakrangee and BTI Payments citing non-compliance with RBI’s directions on ATM deployment and maintenance of net-worth.
The central bank unearthed non-compliance with the RBI directions approved monetary penalty on these entities after considering their written replies and oral submissions in personal hearings. Both Hitachi Payment Services and BTI Payments have been slapped with a fine of Rs 2 crore each. Tata Communications Payment Solutions and Vakrangee, on the other hand, have to pay a penalty of Rs 1 crore each.
The RBI has imposed all these penalties under the provisions of Section 30 of the Payment and Settlement Systems Act, 2007. “The penalties have been imposed in exercise of powers vested in RBI under the provisions of 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 entities with their customers,” the RBI noted in its official press release on the same.
Edited by Mehak Agarwal
Also read: RBI fines two co-op banks, one NBFC