Paytm Payments Bank Limited (PPBL) has violated certain rules and according to the statement given by the RBI on October 20, the imposed penalty is Rs 1 crore.
Why Does Paytm Have To Pay A Penalty To RBI?
The RBI noted in a release that this is related to an offence of the type described in Section 26 (2) of the Payment and Settlement Systems Act, 2007 (PSS Act).
The RBI found that PPBL had presented material that did not reflect the factual situation when it examined Paytm Payments Bank’s application for issuance of a final Certificate of Authorisation, the central bank said.
“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.
Why RBI Has Imposed A Penalty On Western Union Financial Services?
RBI has also fined Western Union Financial Services which is a money transfer service.
RBI has penalized the service provider of Rs 27.8 lakhs for failing to comply with certain requirements of the master instruction on the money transfer service scheme, according to the RBI.
“Western Union had reported instances of breach of the ceiling of 30 remittances per beneficiary during the calendar years 2019 and 2020 and applied to a compound 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 central bank statement said.
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