Punjab National Bank, which is a State-run bank, works under the authorization of the Reserve Bank of India. But recently, it observed that it was operating a bilateral ATM sharing arrangement with its international subsidiary that is Druk Punjab National Bank Ltd, Bhutan since 2010 without taking any approval from the Reserve Bank.
The bank was found to be violating
Section 26(6) of the
Payment and Settlement Systems Act, 2007 and thus the Reserve Bank imposed a fine of Rs 1 crore on it. The RBI even said that for engaging in the operation of prepaid payment instruments and non-compliance of regulatory requirements, it had cancelled the Certificates of Authorisation of five Payment System Operators in the exercise of its power given to it under the Payment and Settlement Systems Act, 2007 which included Delhi Integrated Multi-Modal Transit System Limited, Pyro Networks Private Limited, Card Pro Solutions Private Limited, InCashMe Mobile Wallet Services Private Limited and Aircel Smart Money Limited.
It said that after this cancellation, the entities without certificates cannot continue its business of issuance and operation of prepaid payment instruments. And any people having any claim against these companies can get their claims settled by those companies within 3 years.
RBI is "State" under Article 12, writ petition is maintainable against private bank discharging public functions : Calcutta HC
Judiciary
Mar 13, 2021
Snehal Khemka
(
Editor: Ekta Joshi
)
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The Calcutta High Court in a recent judgement held that the Reserve Bank of India (RBI) is "State" under Article 12 of the Constitution of India and thus, a writ petition is maintainable against it. The single judge bench of Justice Sabyasachi Bhattacharyya made the observations while dismissing objections made to the maintainability of a writ petition filed under Article 226 of the Constitution against the General Manager, Consumer Education and Protection Cell (CEPC) of the RBI and the...
Loan Moratorium Case
Business
Dec 15, 2020
Mriganc Mishra, Intern Aquilas Legal Solutio
(
Editor: Ekta Joshi
)
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The Reserve Bank of India recently informed the Apex Court that borrowers opting for resolution of COVID-19 related stressed loans shall not be required to submit any specific plans. RBI said that borrowers may invoke resolution framework by submitting a request to the lending institutions. “The Resolution Framework does not require any resolution plan in any form to be submitted to the lending institutions at the time of request for invocation. Rather, for invocation, the borrowers are...
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