RBI fines five payment system cos for breach of escrow, KYC and other norms

While Transaction Analysts (India) takes Rs 3 cr hit, four white label ATM operators suffer Rs 1-2 cr penalties

The Reserve Bank of India (RBI) on Friday imposed monetary penalties on five payment system operators for non-complying with certain provisions of the central bank.

A penalty of Rs 3 crore was levied on Transaction Analysts (India) Pvt Ltd. The RBI said on-site inspection of Transaction Analysts (India) revealed non-compliance with directions issued by the RBI on escrow account balances, limits prescribed for certain transactions, and KYC.

Further, penalties ranging from Rs 1-2 crore have been imposed on four white label ATM operators for non-complying with provisions of the RBI guidelines relating to white label ATMs in India.

BTI Payments and Hitachi Payment Services were levied with monetary penalties of Rs 2 crore each and Tata Communications Payment Solutions, as well as Vakrangee, have been served penalties to the tune of Rs 1 crore each.

“Off-site review of the operations of the white label ATM operators had revealed non-compliance with directions issued by the RBI on ATM deployment and maintenance of net-worth”, the RBI said.