The Reserve Bank of India (RBI) has imposed monetary penalty on Tata Communications Payment Solutions(TCPSL) (₹2 crore) and Appnit Technologies Pvt Ltd (ATPL) (₹54.93 lakh) for non-compliance with directions it issued under the Payment and Settlement Systems Act, 2007 (PSS Act).
The central bank’s statement, 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.”
“ATPL was non-compliant with the directions issued by RBI on maintenance of escrow account balance and net-worth requirement.”
Observations by RBI
RBI observed that as these were offences of the nature referred to in Section 26(6) of the PSS Act, notices were issued to the entities.
As per Section 26(6) of the PSS Act, if any provision of this Act is contravened, or if any default is made in complying with any other requirement of this Act…then, the person guilty of such contravention or default, as the case may be, shall be punishable with fine which may extend to ₹10 lakh and where a contravention or default is a continuing one, with a further fine which may extend to ₹25,000 for every day, after the first during which the contravention or default continues.
After reviewing their written responses and oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with its directions were substantiated and warranted the imposition of monetary penalty.
RBI underscored that the penalties have been imposed in exercise of powers vested in it under the provisions 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,” the central bank said.