Recorded RBI impact
Fine: Rs 1.76 Cr
Monetary penalty · Fresh imposition
Published by RBI
31 Oct 2022
Case Brief
The Reserve Bank of India imposed a monetary penalty of Rs 1,76,00,000 on Vakrangee Limited under Section 30 of the Payment and Settlement Systems Act, 2007. RBI found the entity non-compliant with certain provisions of the White Label ATM directions, specifically directions relating to ATM deployment targets. After issuing a show-cause notice and considering the entity’s written and oral submissions, RBI concluded that the non-compliance was substantiated and warranted the penalty. RBI clarified that the action is based on regulatory deficiencies and does not pronounce on the validity of any transaction or agreement with customers.
Why RBI Acted
RBI imposed a monetary penalty under Section 30 of the Payment and Settlement Systems Act, 2007 after finding that Vakrangee Limited was non-compliant with the directions issued by RBI on ATM deployment targets under the White Label ATM framework. RBI said the deficiencies were in regulatory compliance and, after considering the entity’s response and oral submissions, concluded the charge was substantiated.
Operating Impact
Vakrangee Limited must absorb the monetary penalty and address the compliance gaps identified by RBI in its White Label ATM operations. The order does not suspend operations, but it signals heightened regulatory scrutiny over ATM deployment compliance and related obligations under the WLA directions.
Regulatory Basis
- Section 30 of the Payment and Settlement Systems Act, 2007
Action Facts
- Primary Impact
- Fine: Rs 1.76 Cr
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Other