RBI Imposes Rs 1 Crore Fine On PNB

On Friday, Punjab National Bank (PNB) said that the Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on state-run for contravention of the Payment and Settlement Systems Act.

"RBI has observed that the Bank was operating a bilateral ATM sharing arrangement with Druk PNB Bank Ltd, Bhutan, (an international subsidiary of the Bank), since April, 2010 without the prior approval / authorisation from RBI," it said in a stock exchange filing.

RBI imposed the Rs 1 crore penalty for "contravention of the nature referred to in Section 26 (6) of the Payment and Settlement Systems Act, 2007 (PSS Act)", it added.

Shares of PNB closed 1.37 percent higher at Rs 29.50 apiece on BSE on Friday.

Meanwhile, in a statement the RBI said it has cancelled the Certificate of Authorisation (CoA) of five Payment System Operators (PSOs) engaged in issuance and operation of prepaid payment instruments.

The certificates of Card Pro Solutions Private Limited and InCashMe Mobile Wallet Services Private Limited were cancelled because of 'noncompliance with regulatory requirements', while Delhi Integrated Multi-Modal Transit System Limited and Pyro Networks Private Limited voluntarily surrendered their certificates.

The CoA of Aircel Smart Money Limited was cancelled because of non-renewal.