The Reserve Bank of India (RBI) penalised two payment system operators namely: Tata Communications Payment Solutions and Appnit Technologies, for lack of compliance with a few guidelines.
TCPSL, which is entirely owned by Tata Communications Ltd. will pay ₹2 crores while Appnit Technologies will pay ₹54.93 lakh under the provisions of section 30. The central bank added that these fines are due to a deficiency in regulatory compliance and does not mean to raise any question on the authenticity or validity of any transaction entered by the company with their customers.
The ATPL had to face this penalty because it was found out that they were non-compliant with regulations issued by RBI, on maintenance of escrow account balance and net worth requirement.
Whereas TCPSL had to face this fine for being non-compliant with the directions issued by RBI on White Label ATM deployment targets and net worth requirement as well, according to the RBI.
Going by the nature of these offenses, notices were issued to the entities according to the section 26(6) of the PSS Act. After reviewing the oral and written response submitted during the personal hearing, it was made clear that the aforesaid charges of non-compliance with RBJ guidelines were substantiated and warranted the imposition lf monetary penalty, according to the RBI.
