The penalties have been imposed in the exercise of powers vested in RBI under the provisions of Section 30 of the PSS Act.
These actions are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
In TCPSL, the central bank stated that the company was non-compliant with the directions issued by RBI on White Label ATM deployment targets and net-worth requirements.
As these were offences of the nature referred to in Section 26(6) of the PSS Act, notices were issued to the entities.
After reviewing their written responses and oral submissions made during the personal hearing, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted the imposition of monetary penalty.