“It was observed that the instructions issued by TCPSL were not complied with reserve Bank of India On White Label ATM Deployment Target and Net Worth Requirement. ATPL was not complying with the directions issued by RBI on maintenance of escrow account balance and net-worth requirement,” it said.
RBI had issued notices to these two authorized Payment System Operators (PSOs).
After reviewing their written responses and oral submissions during the personal hearing, RBI concluded that the allegations of non-compliance with certain directions were substantiated and warranted imposition of monetary penalty.
However, the central bank said the penalties are based on “deficiencies in regulatory compliance” and are not intended to pronounce upon the validity of any transactions or agreements entered into by entities with their customers.
In another statement, RBI said that a fine of Rs 20 lakh has been imposed on him. Mulmuttil Financiers LimitedKozhencherry, Pathanamthitta District, Kerala for non-compliance of certain provisions of the Directions on Classification of Non-Performing Assets and norms relating to raising of funds through private placement by NBFC-Debentures.
In this case also, RBI said the penalty has been imposed due to deficiencies in regulatory compliance and does not intend to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.