New Delhi, Oct 21: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on Paytm Payments Bank and Rs 27.78 lakh on Western Union Financial Services for deficiencies in regulatory compliance, according to the central bank, is an offence under Section 26 (2) of the Payments and Settlement Act.
A statement issued by the RBI today read, “The Reserve Bank of India (RBI) had, by an order dated October 01, 2021, imposed a monetary penalty of Rs1 crore (Rupees one crore only) on Paytm Payments Bank Limited (PPBL), for an offence committed of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007 (PSS Act).”
It further said, “A Compounding Order dated October 7, 2021, was also issued to Western Union Financial Services Inc (WUFSI), a Money Transfer Service – cross-border inbound service (customer to customer only) operator – imposing a penalty of ₹27,78,750 for non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme (MTSS Directions) dated February 22, 2017.”
Thereafter, the central bank by an order on October 1 imposed a monetary penalty of Rs 1 crore on PPBL. As regards Western Union Financial Services, the RBI said the company had reported instances of breach of the ceiling of 30 remittances per benef
Story first published: Thursday, October 21, 2021, 0:18 [IST]