Home/ Industry / Banking/  RBI slaps 1 crore penalty on Paytm Payments Bank

The Reserve Bank of India on Wednesday fined Paytm Payments Bank Ltd (PBBL) 1 crore for submitting information that did not reflect the factual position in its application for a final Certificate of Authorization (CoA).

A central bank press statement said that the offence comes under the Payment and Settlement Systems Act, 2007 (PSS Act).

“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, the RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty," said the RBI statement.

The RBI also imposed a penalty of 27.8 lakh on Western Union Financial Services, a money transfer service, for non-compliance with certain provisions of the directions contained in the master direction on the money transfer service scheme, the central bank said.

In the case of Western Union, the central bank said the firm had reported instances of breach of the ceiling of 30 remittances per beneficiary during the calendar years 2019 and 2020 and filed an application for compounding of the violation. However, the RBI noted that 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.

Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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Updated: 21 Oct 2021, 09:05 AM IST
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