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The Reserve Bank of India (RBI) has imposed a financial penalty of ₹1,76,00,000 (Rupees One Crore and Seventy Six Lakh solely) on Vakrangee Limited (the entity) for non-compliance with sure provisions of the White Label ATM (WLA) instructions. The penalty has been imposed in train of powers vested in RBI below Section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act). This motion is predicated on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the entity with its prospects. Background It was noticed that the entity was non-compliant with the instructions issued by RBI on ATM deployment targets. Accordingly, discover was issued to the entity advising it to point out trigger as to why penalty shouldn’t be imposed for non-compliance with the instructions. After contemplating the entity’s responses and oral submissions made in the course of the private listening to, RBI concluded that the aforesaid cost of non-compliance with RBI instructions was substantiated and warranted imposition of financial penalty. (Yogesh Dayal) Press Release: 2022-2023/1122 |
