penalty on PSOs

RBI has levied some monetary penalties on two payment system operators viz. Tata Communications Payment Solutions Limited of Rs.20 million and Apnit Technologies Private Limited of Rs.5.49 million.

The penalties as the press release says is for contravention of section 26(6) of the Payment & Settlement Systems Act, 2007. Section 26 is the penalty cause and sub-section (6) is the residual penalty clause for offences for which no penalties have been specified in the respective section. So what exactly is the violation, is not clear.

RBI could do well to emulate other regulators like SEBI, IRDA, CCI which gives detailed adjudication orders on their websites. It makes understanding the compliances much easier.

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