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RBI penalises Tata Communications Payment Solutions, Appnit Technologies

It was observed that TCPSL was non-compliant with the directions issued by RBI on White Label ATM deployment targets and net-worth requirement, the RBI said.

November 24, 2021 / 06:20 PM IST
Representational image.

Representational image.

The Reserve Bank of India (RBI) on November 24 penalised two payment system operators -- Tata Communications Payment Solutions (TCPSL), a wholly-owned subsidiary of Tata Communications Ltd., and Appnit Technologies -- for lack of compliance with certain regulations.

The penalties -- Rs 2 crore on TCPSL and Rs 54.93 lakh on Appnit --  have been imposed in exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act, the RBI said in a press release.

These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers, the central bank said.

It was observed that TCPSL was non-compliant with the directions issued by RBI on White Label ATM deployment targets and net-worth requirement, the RBI said.

Meanwhile, ATPL was non-compliant with the directions issued by the RBI on maintenance of escrow account balance and net-worth requirement.

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As these were offences of the nature referred to in Section 26(6) of the PSS Act, notices were issued to the entities, the central bank said.

"After reviewing their written responses and oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted the imposition of monetary penalty," the RBI said.
Moneycontrol News
first published: Nov 24, 2021 06:20 pm

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