RBI Action Against Paytm Payment Bank: Reserve Bank of India tightened the noose on 2 banks including Paytm, imposed a fine of more than Rs 5 crore, the bank said that this fine is based on deficiencies in regulatory compliance, let us know the complete information in the news.
Paytm Payment Bank has come under the target of RBI. In the case of standard violation, the Reserve Bank has imposed a hefty fine of Rs 5.39 crore on Paytm Payment Bank. Apart from this, RBI has also imposed a fine of Rs 4 lakh on Annasaheb Magar Co-operative Bank of Pune. The central bank said that this penalty is based on deficiencies in regulatory compliance , customer transactions will not be affected.
The Reserve Bank of India said it has imposed a penalty of Rs 5.39 crore on Paytm Payments Bank Ltd for non-compliance with certain provisions including Know Your Customer ( KYC ) norms. RBI also found non-compliance with certain provisions related to RBI guidelines for licensing of payments banks, cyber security framework in banks, securing the use of mobile banking including UPI infrastructure.
According to the official statement, special scrutiny of the bank was conducted from KYC AML (Anti Money Laundering) perspective and comprehensive system audit of the bank was conducted by RBI identified auditors. Following the investigation, the RBI said in a statement that it found that Paytm Payments Bank had failed to identify the beneficial owner in respect of entities involved in providing payment services.
RBI said it also revealed that the bank did not monitor payment transactions and did not conduct risk profiling of entities availing payment services. RBI said that Paytm Payments Bank has violated the regulatory limit of end-of-day balance in some customer advance accounts availing payment services.
A notice has been sent to the bank by the RBI directing it to explain the reasons for failure to comply with the instructions and why penalty should not be imposed on it. The statement said that after considering the bank’s reply and oral submissions made during the personal hearing, RBI came to the conclusion that the allegation of non-compliance with the above RBI directions was proved and it became necessary to impose monetary penalty on the bank.
