Rs.1 crore penalty on Punjab National Bank

Rs.1 crore penalty on Punjab National Bank

On November 13, the State-run Punjab National Bank said that RBI has imposed a penalty for Rs.1 crore for contravention of the Payment and Settlement Systems Act.

In a stock exchange filing it said that “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.”

Rs 1 crore penalty imposed by the RBI 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 percent.

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

Because of ‘noncompliance with regulatory requirements’, the certificates of Card Pro Solutions Private Limited and InCashMe Mobile Wallet Services Private Limited were cancelled. Also, 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 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,” RBI added.

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

Sakshi Patil
“An Investment in Knowledge pays the best interest”. I Ms. Sakshi Patil currently pursuing Bachelors of Law (LLB) from Pune University ,and I believe that Knowledge is a commodity to share and it should be not remain the monopoly of selected few. Studying Law helps me understand how society is govern and how law acts as medicine to heal the society. Keeping positive and open minded approach in every aspect of life is the aim and I hope to learn with every opportunity and can help to those in need and create awareness among people about law and its importance. As quoted by Henry Ward Beecher, ”A Law is valuable not because it is a law ,but because there is right in it.”