The Reserve Bank of India has imposed a monetary penalty worth Rs 1 crore on Paytm Payments Bank for violating its guidelines. In a press statement, the central bank said that the fine is related to an offence committed of the nature referred to in Section 26 (2) of Payment and Settlement Systems Act, 2007 (PSS Act).
On examination of PPBL’s application for issue of final Certificate of Authorisation (CoA), it was observed that PPBL 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 PSS Act, 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.
Earlier this week, RBI imposed a monetary penalty of Rs 1 crore on India’s largest public lender State Bank of India (SBI) for non-compliance with the directions contained in “RBI (Frauds classification and reporting by commercial banks and select FIs directions 2016”.
The penalty was imposed in the exercise of powers vested in RBI under the provisions of section 47A (1) (c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
