INSUBCONTINENT EXCLUSIVE:
RBI has actually enforced a penalty of Rs 1 crore on Paytm Payments BankThe Reserve Bank of India (RBI) has actually imposed a penalty of Rs
one crore on Paytm Payments Bank for violating arrangements of Payment and Settlement Systems Act 2007
It has also punished Western Union Financial Providers by enforcing a charge of Rs 27.8 lakh for breaking recommended limit of remittances
per year.According to a declaration released by the central bank, it was kept in mind that Paytm payments bank's application seeking concern
of last certificate of authorization, did not reflect its accurate positionThe Reserve Bank of India (RBI) on October 20 stated it has
enforced a monetary penalty of Rs one crore on Paytm Payments Bank Limited (PPBL) for specific violations.This is connected to an offence
dedicated of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007 (PSS Act), the RBI stated in a press
statement.On examination of Paytm payments bank's application for issue of last Certificate of Authorisation, the RBI observed that PPBL had
submitted information that did not show the accurate position, the central bank stated
As this was an offence of the nature referred to in Area 26 (2) of the PSS Act, a notification was issued to PPBL
After evaluating the written reactions and oral submissions made during the individual hearing, the RBI identified that the previously
mentioned charge was validated and called for the imposition of a financial penalty, the RBI order said.It has also enforced a charge of Rs
27.8 lakhs on Western Union Financial Providers, a money transfer service for breaching the ceiling of 30 remittances per beneficiary during
the calendar years of 2019 and 2020
Western Union had reported circumstances of breach of the ceiling of 30 remittances per beneficiary throughout the fiscal year 2019 and
2020, and filed an application for compounding of the offense
RBI identified that the abovementioned non-compliance necessitated the imposition of a monetary charge after analysing the compounding
application, and oral submissions made throughout the personal hearing, the central bank declaration stated.
