The Reserve Bank of India (RBI), on Wednesday, announced that it has slapped a penalty of Rs 1 crore on Paytm Payments Bank Limited (PPBL) for an offence committed of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007 (PSS Act).
According to a statement issued by the central bank, it was noted that Paytm payments bank's application seeking issue of final certificate of authorization, did not reflect its factual position.
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 RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty," the RBI order said.
It has also penalised Western Union Financial Services by imposing a penalty of Rs 27.8 lakh for breaching the ceiling of 30 remittances per beneficiary during the calendar years of 2019 and 2020.
"Western Union 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 aforementioned non-compliance warranted the imposition of a monetary penalty after analysing the compounding application, and oral submissions made during the personal hearing," the central bank statement said.