RBI penalises Paytm Payment Bank and Western Union Financial Services

RBI imposed a monetary penalty of Rs 1 crore on Paytm Payments Bank

The Reserve Bank of India (RBI) on Wednesday imposed a monetary penalty of Rs 1 crore on Paytm Payments Bank for submitting information that did not reflect the factual position, which, according to the central bank, is an offence under Section 26 (2) of the Payments and Settlement Act.

“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," RBI said.

The central bank has also imposed a penalty of Rs Rs 27.78 lakh on Western Union Financial Services for non-compliance with Money Transfer Service Scheme (MTSS) directions.

“WUFSI 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 banking regulator said.