RBI slaps ₹1 crore penalty on Paytm Payments Bank
1 min read 21 Oct 2021, 12:45 AM ISTThe RBI imposed a penalty of ₹27.8 lakh on Western Union Financial Services for non-compliance with certain provisions
PremiumThe 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.
