RBI imposed Monetary Penalty on TCPSL & ATPL
RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted the imposition of monetary penalty.
Reserve Bank of India/Image credit: Reuters
New Delhi: The Reserve Bank of India (RBI) on November 24, Wednesday imposed the monetary penalty of Rs 200 Lakh and Rs. 54.93 Lakh on Tata Communications Payment Solutions Limited (TCPSL) and Appnit Technologies Private Limited (ATPL) simultaneously.
The penalty has been imposed in authorized Payment System Operators (PSOs) for committing offences of the nature referred to in Section 26(6) of the Payment and Settlement Systems Act, 2007 (PSS Act).
The penalties have been imposed in the exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act. 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.
Background
It was observed that TCPSL was non-compliant with the directions issued by RBI on White Label ATM deployment targets and net-worth requirements. ATPL was non-compliant with the directions issued by RBI on the maintenance of escrow account balance and net-worth requirement. As these were offences of the nature referred to in Section 26(6) of the PSS Act, notices were issued to the entities.
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.
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