The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on Paytm Payments Bank for violating the provisions of the Payment and Settlement Systems Act 2007.
It has also fined Western Union Financial Services by levying a fine of Rs 27.8 lakh for violating the prescribed limit of remittances per annum.
According to a statement issued by the central bank, it was noted that Paytm Payments Bank’s application for issuance of final certificate of authorization did not have a factual position.
The Reserve Bank of India (RBI) on October 20 said that it has imposed a monetary penalty of Rs 1 crore on Paytm Payments Bank Ltd (PPBL) for certain violations.
This pertains to an offense of the nature mentioned in Section 26(2) of the Payment and Settlement Systems Act, 2007 (PSS Act), RBI said in a press statement.
The central bank said that on examination of Paytm Payments Bank’s application for issuance of final certificate of authorization, the RBI found that PPBL had furnished information that did not reflect a factual position.
“As this was an offense of the nature mentioned 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 above The allegation was substantiated and warranted imposition of monetary penalty,” the RBI order said.
It has also imposed a fine of Rs 27.8 lakh on Western Union Financial Services, a money transfer service, for breaching the limit of 30 remittances per beneficiary during the calendar years of 2019 and 2020.
“Western Union had reported instances of violation of the limit 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 above non-compliance led to the imposition of monetary penalty after analyzing the compounding application and oral submissions made during the personal hearing,” the central bank statement said.