October 21, 2021 09:57 AM
The Reserve Bank of India (RBI) on October 20 said it has imposed a monetary penalty of Rs 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 Reserve Bank of India determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty,” the central bank said.
Meanwhile, the RBI imposed a penalty of Rs 27.8 lakhs on Western Union Financial Services, a money transfer service for non-compliance with certain provisions of the directions contained in the master direction on the money transfer service scheme, the RBI said
In the case of Western Union, the RBI said the company 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 non-compliance warranted the imposition of a monetary penalty after analyzing the
compounding application, and oral submissions made during the personal hearing, the central bank said.
This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers, the RBI added.