Penalty. Monetary penalty imposed on five payment system operators

The Reserve Bank of India imposed monetary penalties on five payment system operators.

“RBI has imposed a monetary penalty of ₹3 crore on Transaction Analysts (India) for contravention of/non-compliance with certain provisions of directions issued by the RBI contained in the Master Direction on Issuance and Operation of PPIs in India dated October 11, 2017 and Master Direction – KYC Direction, 2016,” it said in a statement on Friday.

On-site inspection of Transaction Analysts (India) revealed non-compliance with RBI directions on escrow account balances, limits prescribed for certain transactions and KYC, it further said.

Also see: RBI issues Master Directions on Prepaid Payment Instruments

The RBI also imposed monetary penalty on four white label ATM (WLA) operators for contravention of/non-compliance with certain provisions of the directions contained in the WLA in India – Guidelines dated June 2012.

A penalty of ₹2 crore each has been imposed on BTI Payments and Hitachi Payment Services. A penalty of ₹1 crore each has been imposed on Tata Communications Payment Solutions and Vakrangee.

“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,” the RBI said, adding that notices were issued to the entities.

After considering the written responses and oral submissions made in the personal hearings, the RBI concluded that the charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

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