The Reserve Bank of India has imposed a penalty of Rs 1 crore on the state-run Punjab National Bank for contravention of the Payment and Settlement Systems Act, said the lender.
“RBI 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.
“Reserve Bank of India (RBI) vide its order dated 13.11.2020 has imposed a penalty of 1,00,00,000/- (1 crore only) on the Bank for the contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act),” it added.
Meanwhile, in a statement the RBI 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 central bank said that following the cancellation of the CoA, the entities cannot transact the business of issuance and operation of PPIs.
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.