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RBI imposes Rs 1 cr penalty on PNB for unauthorised ATM operations

The Reserve Bank of India (RBI) imposed the Rs 1 crore penalty for "contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)", it added

Topics
RBI | penalty | Punjab National Bank

Press Trust of India  |  Mumbai 

PNB, Punjab national bank
PNB’s shares closed at Rs 29.50 a piece on BSE, up 1.37 per cent.

State-run on Friday said the has imposed a of Rs 1 crore on it for contravention of the Payment and Settlement Systems Act.

"has observed that the Bank was operating a bilateral ATM sharing arrangement with Druk PNB Bank Ltd, Bhutan, (international subsidiary of the Bank), since April, 2010 without the prior approval / authorisation from RBI," it said in a stock exchange filing.

The Reserve Bank of India (RBI) imposed the Rs 1 crore for "contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)", it added.

PNB's shares closed at Rs 29.50 a piece on BSE, up 1.37 per cent.

Meanwhile, in a statement the said it has cancelled the Certificate of Authorisation (CoA) of five Payment System Operators (PSOs) engaged in issuance and operation of prepaid payment instruments.

The certificates of Card Pro Solutions Private Limited and InCashMe Mobile Wallet Services Private Limited were cancelled because of 'noncompliance with regulatory requirements', while Delhi Integrated Multi-Modal Transit System Limited and Pyro Networks Private Limited voluntarily surrendered their certificates.

The CoA of Aircel Smart Money Limited was cancelled because of non-renewal.

All these five entities were into issuance and operation of prepaid payment instruments (PPIs).

The RBI said following the cancellation of the CoA, the entities cannot transact the business of issuance and operation of PPIs.

However, customers or merchants having a valid claim, if any, on these companies as PSOs, can approach them for settlement of their claims within three years from the date of cancellation, it added.

The Reserve Bank of India (RBI) cancelled the certificates in exercise of the powers conferred on it under the Payment and Settlement Systems Act, 2007.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, November 13 2020. 21:26 IST
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