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RBI imposes fine on five payment system operators for violation of norms

The maximum fine, Rs 3 crore, has been slapped on Transaction Analysts (India) Pvt Ltd. The four other entities that have been penalised are White Label ATM (WLA) operators.

August 27, 2021 / 08:05 PM IST
Reserve Bank of India (File image)

Reserve Bank of India (File image)

A monetary penalty has been imposed on five payment system operators for violation of norms, the Reserve Bank of India (RBI) said in a statement issued on August 27.

The maximum fine, Rs 3 crore, has been slapped on Transaction Analysts (India) Pvt Ltd, the central bank said.

"On-site inspection of Transaction Analysts (India) Pvt. Ltd. revealed, inter-alia, non-compliance with directions issued by the RBI on escrow account balances, limits prescribed for certain transactions, and KYC," the RBI said, as it cited the reason behind penalising the operator.

The four other entities that have been fined are White Label ATM (WLA) operators. Among them, BTI Payments Pvt Ltd and Hitachi Payment Services Pvt Ltd have been imposed a fine of Rs 2 crore each, whereas, Tata Communications Payment Solutions Ltd and Vakrangee Ltd have been directed to pay Rs 1 crore.

"Off-site review of the operations of the WLA Operators had revealed non-compliance with directions issued by the RBI on ATM deployment and maintenance of net-worth. Accordingly, notices were issued to the entities," the central bank said.

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After considering the written responses and oral submissions made in the personal hearings, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty, it added.

Also Read | RBI announces framework for payment system operators; PSOs cannot outsource core management functions

The penalties have been imposed in the 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 entities with their customers," RBI said.
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