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.
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.