RBI imposes Rs 1 cr penalty on Paytm Payments Bank

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.

“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 central bank said.

RBI has also penalised Westen Union Financial Services, a money transfer service for not following the rules pertaining to the directions contained in the master direction on the money transfer service scheme, the RBI said.

The company breached of the cap of 30 remittances per beneficiary during the calendar years 2019 and 2020 and filed an application for compounding of the violation. 

The penalty was imposed after analysing the compounding application, and oral submissions made during the personal hearing, the central bank said.

This step was taken because of non-adherence to 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.