RBI fines Paytm, Western Union

The Reserve Bank has imposed a penalty of Rs 1 crore on Paytm Payments Bank Limited (PPBL) and Rs 27.78 lakh on Western Union Financial Services for non-compliance with certain directions.

In a release, the RBI said on examination of PPBL’s application for issue of final Certificate of Authorisation (CoA), it was observed that it 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 Payment and Settlement Systems Act, 2007, 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,” it said.