The Reserve Bank of India (RBI) imposed a penalty of one crore on Paytm Payments bank for violating provisions of Payment and Settlement Systems Act 2007. Paytm has also been penalized 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. On October 20, RBI stated that 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 central bank informed that on examination of Paytm payments bank’s application for issue of final Certificate of Authorization, the RBI observed that PPBL had submitted information that did not reflect the factual position.
The RBI further added that this is 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. 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.
Pic Courtesy – Google
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