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PayTM Payments Bank penalized by RBI; to pay Rs.1 Crore

The RBI has imposed a penalty of ₹1 crore on Paytm Payments Bank Limited (PPBL) owing to non-compliance with its certain directions.

In a release on Wednesday, the RBI stated that on examination of PPBL’s application for issue of final Certificate of Authorisation (CoA), it was observed that it had submitted information which did not reflect the factual position.

RBI said, “As this was an offence of the nature referred to in Section 26 (2) of the PSS Act, a notice was issued to PPBL. After reviewing the written responses and oral submissions made during the personal hearing, RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty.”

“After reviewing the written responses and oral submissions made during the personal hearing, the RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty,” it further said.

Thereafter, the central bank by an order on October 1 imposed a monetary penalty of Rs 1 crore on PPBL.

On the other hand, RBI also imposed a fine of over ₹27 lakh Western Union Financial Services Inc (WUFSI), a cross-border in-bound service operator, for ‘for non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme (MTSS Directions) dated February 22, 2017.’

“RBI determined that the aforementioned non-compliance warranted the imposition of a monetary penalty after analyzing the compounding application, and oral submissions made during the personal hearing,” RBI mentioned in its statement.
In regards with the Western Union Financial Services, the RBI said the company had reported instances of breach of the ceiling of 30 remittances per beneficiary during 2019 and 2020 and filed an application for compounding of the violation.

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Harshita Sharma

A financial news enthusiast and a keen observer of the stock market, I bring to you all the updates from the world of business and finance. So, check out my posts and stay tuned with the major (informational) happenings.

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