Penalties have been imposed for non-compliance with the rules on ATM deployment targets.
“The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act). The action is based on deficiencies in regulatory compliance and is not intended to impinge on the legality of any entity. transactions or agreements entered into by its customers,” RBI said in a release.
A notice was issued to the unit advising it to show cause as to why the penalty should not be imposed.
Taking into account the reply filed by Vakrangee, RBI imposed the penalty. RBI concluded that the above allegation of non-compliance of RBI’s directions was substantiated and warranted imposition of monetary penalty.
Among others, the regulator has imposed a penalty of Rs 30 lakh on the Jammu and Kashmir State Co-operative Bank Ltd.; Mumbai-based The Pratap Co-Operative Ltd was fined Rs 6 lakh and Rs 5 lakh each LIC Housing Finance and Mysore Merchants Co-Operative Bank Ltd.
The Nagar Sahakari Bank Ltd, Maharajganj, Uttar Pradesh 4 lakh has been imposed with a fine of Rs. While Karnataka-based The City Co-operative Bank Ltd. and Uttar Pradesh-based Banda Urban Co-operative Bank Ltd. have been fined Rs 2 lakh each.
(with inputs from PTI)