Business

RBI Slaps Rs 1 Crore Penalty On Paytm Payments Bank

By
OB Bureau

New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on Paytm Payments Bank Limited (PPBL).

The order, dated October 1, 2021, was issued for an offence for violation of Section 26 (2) of Payment and Settlement Systems Act, 2007.

According to a press release, the notice was issued because in its application for issue of final Certificate of Authorisation (CoA), PPBL had submitted information which did not reflect the factual position.

A Compounding order was issued on October 7 to Western Union Financial Services Inc (WUFSI) — a Money Transfer cross-border in-bound service (customer to customer only) operator — imposing a penalty of Rs 27,78,750 for non-compliance with certain provisions of directions contained in Master Direction on Money Transfer Service Scheme (MTSS Directions).

OB Bureau

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