RBI imposes monetary penalty on five payment system operators
02 September 2021
Reserve Bank of India (RBI) has imposed monetary penalty of Rs3 crore on Transaction Analysts (India) Pvt Ltd for contravention of / non-compliance with certain provisions of the directions issued by RBI on iIssuance and operation of PPIs in India.
Monetary penalty has also been imposed on four White Label ATM (WLA) operators for contravention of / non-compliance with certain provisions of the directions contained in the ‘White Label ATMs in India – Guidelines’.
These include BTI Payments Pvt Ltd (R2 crore), Hitachi Payment Services Pvt Ltd (Rs2 crre). Tata Communications Payment Solutions Ltd (Rs1 crore) and Vakrangee Ltd (Rs1 crore).
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, RBI stated in arelease.
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.
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. 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, the release stated.