RBI Imposes Rs One Crore Fine Paytm Payments Bank Violating Rules

Mumbai, 20th October 2021: Paytm Payments Bank, one of the country’s leading payments banks, has suffered a major setback.

The Reserve Bank of India (RBI) has slapped Paytm Payments Bank Ltd. for violation of rules. PPBL has been fined one crore rupees. This penalty has been imposed for violation of Section 6(2) of Payment and Settlement.

In a statement issued by the Reserve Bank, it was said that the case of Paytm Payments Bank is related to a violation of the rules of the Payment and Settlement System Act. The central bank said that on examination of Paytm Payments Bank’s application for issuance of the final certificate of authorization, we found that Paytm Payments Bank had furnished information that did not reflect a factual position.

The Reserve Bank of India said in a statement that on examination of Paytm Payments Bank’s application for issuance of the final certificate of authorisation, RBI found that Paytm Payments Bank had furnished information that did not reflect a factual position. “As this was in violation of Section 26(2) of the Payment and Settlement System Act, a notice was issued to Paytm Payments Bank,” the central bank said.

After reviewing the written replies and oral inputs received during the personal hearing, the RBI after a review found the allegations to be true. After this, action was taken to impose a fine on PPBL.

Western Union fined Rs 27.8 lakh
Apart from Paytm Payments Bank, RBI took major action against Western Union Financial Services in another case. The central bank has imposed a fine of Rs 27.8 lakh on Western Union. The central bank said that some rules of the Money Transfer Service Scheme (MTSS) were violated by Western Union. Western Union has been fined for allowing more than 30 remittances in a financial year.

Recently RBI imposed a fine of Rs 1 crore on SBI Recently, the RBI imposed a fine on the country’s largest state-run bank SBI. RBI imposed a hefty fine of Rs 1 crore on SBI for non-compliance with regulatory instructions. This action was taken on SBI for non-compliance with the instructions contained in the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select Financial Institutions) Directions 2016.