Reserve Bank of India (RBI) has imposed monetary penalty on two payment system operators viz., Paytm Payments Bank Ltd (PBBL) as well as Western Union Financial Services Inc.RBI levied a penalty of Rs. 1 crore on PBBL. Penalty was imposed because of an offence related to Payment and Settlement Systems Act, 2007 (PSS Act).
RBI fines Paytm Payments Bank and Western Union
It levied a penalty of Rs, 27.78 lakh on Western Union Financial Services, which is a cross-border in-bound service operator. Fine was imposed for non-compliance with certain directions that were issued by the central bank.
In the application for issue of final Certificate of Authorisation (CoA) of PBBL, RBI observed that PPBL had submitted information which did not reflect the factual position. This was an offence of the nature in accordance with Section 26 (2) of the PSS Act.
