After Western Union, SBI & SCB, RBI imposes Rs 1 cr penalty on Paytm

Paytm Payments Bank

New Delhi, 20 October: The Reserve Bank of India (RBI) has imposed a penalty of Rs 1 crore on Paytm Payments Bank Limited (PPBL).

The RBI has imposed this penalty for violation of rules for violation of Section 26(2) of the Payment and Settlement Act 2007.

Along with this, the Reserve Bank has also imposed a penalty of Rs 27.8 lakh on Western Union Financial Services.

In a statement issued by the RBI on Wednesday, it has been said that the case of Paytm Payments Bank is related to violation of the rules of Payment and Settlement System Act.

The RBI said that on examination of the PPBL Authority’s application for issuance of final certificate; we found that Paytm Payments Bank had furnished information which did not reflect the factual position.

The RBI said that dissemination of information was violation of section 26(2) of the Payment and Settlement Act 2007. In this context, a notice was issued to Paytm Payments Bank.

After a personal hearing in this matter and review of the information given orally, the RBI found the allegations to be true, after which action was taken to impose penalty on PPBL.

Apart from this, RBI has imposed a fine of Rs 27.8 lakh on Western Union. The central bank said that some rules of the Money Transfer Service Scheme were violated by Western Union. In fact, the Reserve Bank has imposed this penalty on Western Union for allowing more than 30 remittances in a financial year.

It is noteworthy that a day earlier, the RBI had imposed a penalty of Rs 1 crore on the largest public sector bank, State Bank of India (SBI) and Rs 1.95 crore on the private sector Standard Chartered Bank.

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