New Delhi: The Reserve Bank of India (RBI) has slapped Rs one crore fine on Paytm Payments Bank. The central bank in a compounding order also imposed a penalty of Rs 27.78 lakh on Western Union Financial Services for non-compliance with its directions.
The RBI in a press note said that the 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.
On examination of Paytm Payments Bank application for issue of final Certificate of Authorisation (CoA), the RBI observed the Paytm Payments Bank had submitted information which did not reflect the factual position.
”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,” the Central Bank said in the press note.
Western Union Financial Services 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.
”RBI determined that the aforementioned non-compliance warranted the imposition of a monetary penalty after analysing the compounding application, and oral submissions made during the personal hearing,” the press note said.