The Reserve Bank of India (RBI) on Wednesday has imposed monetary penalties on two payment system operators for deficiencies in certain regulatory compliance.
Issuing a statement, the RBI said a monetary penalty of Rs 1 crore on Paytm Payments Bank Ltd (PPBL) for an offence committed of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007.
Also, the central bank said a penalty of Rs 27,78,750 lakh has been imposed on Western Union Financial Services Inc (WUFSI) for non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme.
The penalties have been imposed in the exercise of powers vested in RBI under the provisions of Section 30 and Section 31 of the PSS Act. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
"On examination of PPBL's application for issue of final Certificate of Authorisation (CoA), it was observed that PPBL had submitted information which did not reflect the factual position. 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 said.
"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 central bank further said.
(Edited by : Jomy Jos Pullokaran)
First Published: IST