New Delhi: The Reserve Bank of India (RBI) on Wednesday imposed a penalty of Rs one crore on Paytm Payments Bank for violating provisions of the Payment and Settlement Systems Act 2007. The Reserve bank has also penalised Western Union Financial Services for violating the prescribed limit of remittances per year. According to RBI, Western Union Financial Services has been imposed a penalty of Rs 27.8 lakh.Also Read - IPO-Bound LIC Can Now Have 9.99 Per Cent Stake In Kotak Mahindra Bank | Details Here
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. Also Read - RBI Slaps Penalty Of Rs 1 Crore On SBI For Irregularities In Regulatory Compliance
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. Also Read - This Indian Surpasses Mukesh Ambani to Become Asia's Richest Person | List of India's Richest Billionaires
“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 imposed a penalty of Rs 27.8 lakhs on Western Union Financial Services, 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 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.