RBI Penalty On Paytm: The Reserve Bank of India has imposed a monetary penalty on two payment system operators. One crore fine has been imposed on Paytm Payments Bank Ltd. Western Union was also fined for not following the rules
RBI Penalty On Paytm: The Reserve Bank of India (RBI) has imposed penalties on two payment system operators. Monetary penalties have been imposed on Paytm Payments Bank Limited (PPBL) and Western Union Financial Services Inc (WUFSI) for deficiencies in regulatory compliance. RBI says that Paytm was found guilty under Section 26(2) of the Payment and Settlement Systems Act, 2007 (PSS Act).
27 Lakh Fine Imposed on WUFSI
Further, the statement said that a compounding order dated February 22, 2017, found Western Union Financial Services Inc. (WUFSI) guilty of non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme (MTSS Instructions). Gaya. For which RBI has imposed a fine of 27 lakhs on this.
Error in Compliance
RBI has further informed that the penalty has been imposed in the exercise of the powers vested in RBI under the provisions of Section 30 and Section 31 of the PSS Act. RBI says that this action is based on deficiencies in regulatory compliance and is not intended to analyze the validity of any transaction or agreement entered into by entities with their customers.
RBI further stated that on examination of PPBL’s application for issue of Final Certificate of Authority (CoA), it was found that PPBL had furnished information that did not reflect the factual position. Since it is an offense under 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, RBI confirmed the above allegation, and a monetary penalty was imposed.
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