The Reserve Bank of India has imposed a daunting Rs. 1 Crore penalty on Paytm Payments Bank Limited (PPBL) over certain specified violations.
On examination of Paytm Payments Bank’s application for issue of final Certificate of Authorisation, the RBI observed that PPBL had submitted information that did not reflect the factual position, the central bank said in a statement.
“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,” RBI added.
Furthermore, the central bank also imposed a fine of over ₹27 lakh on cross-border in-bound service operator Western Union Financial Services Inc (WUFSI) 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.’
“This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers,” RBI said in a statement.
The central bank also imposed a fine of over ₹27 lakh on cross-border in-bound service operator Western Union Financial Services Inc (WUFSI)