The Reserve Bank of India has fined Paytm Payments Bank Limited (PPBL) Rs 1 crore and Western Union Financial Services Rs 27.78 lakh for failing to follow certain instructions.
In a statement issued on Wednesday, the RBI stated that during the examination of PPBL’s application for the issuance of the final Certificate of Authorisation (CoA), it was discovered that it had submitted information that did not reflect the true situation.
As this was an offence of the nature referred to in Section 26 (2) of the Payment and Settlement Systems Act, 2007, a notice was issued to PPBL.
“The RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty after reviewing the written responses and oral submissions made during the personal hearing,” it said.
According to the RBI, Union Financial Services reported instances of exceeding the limit of 30 remittances per beneficiary in 2019 and 2020, and filed an application for compounding of the violation.
“After analysing the compounding application and oral submissions made during the personal hearing, the RBI determined that the… non-compliance warranted the imposition of a monetary penalty,” it said.
The RBI, on the other hand, stated that the penalties are based on regulatory compliance deficiencies and are not intended to rule on the validity of any transaction or agreement entered into by the entities with their customers.