The Reserve Bank of India (RBI) has imposed a penalty of ₹ one crore on Paytm Payments Bank for violating provisions of Payment and Settlement Systems Act 2007.
It has also penalised Western Union Financial Services by imposing a penalty of Rs 27.8 lakh for violating prescribed limit of remittances per year.
According to a statement issued by the central bank, it was noted that Paytm payments bank's application seeking issue of final certificate of authorization, did not reflect its factual position
The Reserve Bank of India (RBI) on October 20 said it has imposed a monetary penalty of ₹ one crore on Paytm Payments Bank Limited (PPBL) for certain violations.
This is related to an offence committed of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007 (PSS Act), the RBI said in a press statement.
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.
“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 RBI order said.
It has also imposed a penalty of ₹ 27.8 lakhs on Western Union Financial Services, a money transfer service for breaching the ceiling of 30 remittances per beneficiary during the calendar years of 2019 and 2020.
“Western Union 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 central bank statement said.