RBI imposes Monetary Penalty of ₹1 crore on Paytm Payments Bank
Paytm Payments Bank Ltd (PBBL) was fined Rs. 1 crore by the Reserve Bank of India on Wednesday for submitting false information in its application for a final Certificate of Authorization (CoA).
According to a press release from the central bank, the offence is covered by the Payment and Settlement Systems Act of 2007. (PSS Act).
“A notice was given to PPBL because this constituted an infringement of the sort described in Section 26 (2) of the PSS Act.” The RBI found that the aforementioned accusation was proven and warranted the imposition of a monetary penalty after analysing the written responses and oral submissions made during the personal hearing,” according to the RBI statement.
The RBI also fined Western Union Financial Services, a money transfer service, Rs. 27.8 lakh for failing to comply with certain requirements of the master direction on the money transfer service plan, according to the central bank.
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.