Vakrangee Ltd fined Rs1.76 crore by RBI

1 Nov 2022 , 09:42 AM

Vakrangee Limited  has been fined Rs1.76 crore by the Reserve Bank of India (RBI) for failing to comply with the requirements of the White Label ATM (WLA) guidelines.

The fine has been issued due to a failure to meet the targets for the ATM rollout.

“The fine was issued in accordance with the authority granted to the RBI by Section 30 of the 2007 Payment and Settlement Systems Act (PSS Act). This action is based on regulatory compliance shortcomings and is not meant to rule on the legality of any deal or arrangement the entity has with its clients, “RBI stated in a statement.

The entity received a notice instructing it to provide justification as to why a penalty shouldn’t be applied.

Following consideration of Vakrangee’s response, the RBI levied the fine. The RBI came to the conclusion that the aforementioned charge of failing to follow RBI instructions was true and called for the imposition of a financial penalty.

The regulator has fined The Jammu and Kashmir State Co-operative Bank Ltd. Rs30 lakh, The Pratap Co-operative Ltd. of Mumbai Rs6 lakh, and LIC Housing Finance and The Mysore Merchants Co-operative Bank Ltd. each Rs5 lakh.

A charge of Rs4 lakh was imposed on The Nagar Sahakari Bank Ltd in Maharajganj, Uttar Pradesh, while fines of Rs2 lakh each were imposed on The City Co-operative Bank Ltd in Karnataka and Banda Urban Co-operative Bank Ltd in Uttar Pradesh.

For feedback and suggestions, write to us at [e-mail]