RBI fines two payment system operators

The Reserve Bank of India has imposed monetary penalties on two payment system operators – Paytm Payments Bank Ltd (PPBL) and Western Union Financial Services (WUFSI) – as deficiencies were found in regulatory compliance. The RBI imposed a Rs 1 crore monetary penalty on Paytm Payments Bank for an offence committed under the Payment and Settlement Systems Act, 2007.

Besides, the regulator has imposed a monetary penalty of over Rs. 27 lakh on the WUFSI for non-compliance with certain provisions of the directions contained in the ‘Master Direction on Money Transfer Service Scheme’ (MTSS Directions).