vakrangee: RBI imposes Rs 1.76 crore penalty on Vakrangee for non-compliance with regulations

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.76 crore on Vakrangee Limited (the entity) for non-compliance with certain provisions of the White Label ATM (WLA) directions.

The penalty has been imposed in respect to non-compliance with regulations on ATM deployment targets.

“The penalty has been imposed in exercise of powers vested in RBI under Section 30 of the Payment and Settlement Systems Act, 2007 (PSS Act). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers,” RBI said in a release.

A notice was issued to the entity advising it to show cause as to why penalty should not be imposed.

The RBI imposed the penalty after taking into account the response filed by Vakrangee. The RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

Among others, the regulator has imposed a Rs 30 lakh penalty on The Jammu and Kashmir State Co-operative Bank Ltd; a fine of Rs 6 lakh on Mumbai-based The Pratap Co-operative Ltd and Rs 5 lakh each on LIC Housing Finance and The Mysore Merchants Co-operative Bank Ltd.

The Nagar Sahakari Bank Ltd, Maharajganj, Uttar Pradesh has been levied a fine of Rs 4 lakh; while Karnataka-based The City Co-operative Bank Ltd and Uttar Pradesh-based Banda Urban Co-operative Bank Ltd were penalised with fines of Rs 2 lakh each.

(With inputs from PTI)