Paytm Payments Bank Limited (PPBL) was fined Rs 1 crore by the Reserve Bank of India on Wednesday for certain specific breaches.
The RBI found that PPBL had presented material that did not represent the true situation when it examined Paytm Payments Bank’s application for issuance of a final Certificate of Authorisation, according to a statement from the central bank.
“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.
WUFSI 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,” it said.
