Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
24 Nov 2021
Case Brief
The Reserve Bank of India imposed monetary penalties on Tata Communications Payment Solutions Limited and Appnit Technologies Private Limited, both authorised Payment System Operators, under Section 30 of the PSS Act, 2007. RBI said the penalties were for offences referred to in Section 26(6) and were based on deficiencies in regulatory compliance. TCPSL was found non-compliant with RBI directions on White Label ATM deployment targets and net-worth requirement, while ATPL was found non-compliant with directions on maintenance of escrow account balance and net-worth requirement. After reviewing written responses and oral submissions, RBI concluded the charges were substantiated and imposed penalties of Rs 200 lakh and Rs 54.93 lakh respectively.
Why RBI Acted
RBI imposed monetary penalties on two authorised Payment System Operators under Section 30 of the PSS Act, 2007, after finding offences under Section 26(6). TCPSL was non-compliant with RBI directions on White Label ATM deployment targets and net-worth requirement. ATPL was non-compliant with RBI directions on maintenance of escrow account balance and net-worth requirement. RBI said the charges were substantiated after considering written responses and oral submissions.
Operating Impact
TCPSL and ATPL must pay the imposed penalties and remain subject to RBI oversight. The action does not by itself invalidate customer transactions or agreements, but it reflects confirmed compliance deficiencies and may increase supervisory scrutiny going forward.
Regulatory Basis
- Section 26(6) of the Payment and Settlement Systems Act, 2007
- Section 30 of the PSS Act
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 21 Oct 2021
- Effective From
- 21 Oct 2021
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- Payment entity
Related Entities
Entities similar to Appnit Technologies Private Limited (ATPL)