RBI imposed a penalty of one crore on Punjab National Bank

Punjab National Bank on Friday said that the Reserve Bank of India has imposed a fine of Rs 1 crore on it. The penalty has been imposed for not properly following the Payment and Settlement Systems Act. Shares of PNB gained 1.37 percent to close at Rs 29.50 on the BSE.

PNB said in the information given to the stock markets that RBI observed that the bank had been operating a bilateral ATM sharing arrangement with Druk PNB Bank Limited, Bhutan (the bank's international subsidiary) since April 2010. For this, it did not get prior approval from RBI. Due to non-compliance of the nature mentioned in section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)  RBI imposed a fine of one crore rupees.

Meanwhile, in a statement, RBI said that 5 'Payment System Operators' Certificate of Authorization (CoA) has been canceled. These operators used to issue and operate prepaid payment instruments. The certificates of Card Pro Solution Private Limited and Incashme Mobile Wallet Services Private Limited were canceled due to non-compliance with regulatory requirements.

Delhi Integrated Multi-Modal Transit System Ltd and Pyro Networks Pvt Ltd themselves have reduced their certificates to 8. The CoAs of Aircel Smart Money Limited were canceled because they were not renewed. RBI said that any customer or merchant who has a valid claim on these five PSOs can contact these PSOs for settlement for 3 years from the date of cancellation.