RBI Imposed A Fine Of Rs 1 Crore On Paytm Payments Bank
RBI imposed a fine of Rs 1 crore on Paytm Payments Bank, Western Union Financial Services also imposed a penalty.
Two companies have been fined for non-compliance with certain instructions from the Reserve Bank of India (RBI).
A penalty of Rs 1 crore has been imposed on Paytm Payments Bank Limited (PPBL) by RBI and Rs 27.78 lakh on Western Union Financial Services.
In a release issued on Wednesday, RBI said that “On examination of Paytm Payments Bank’s application for issue of Final Authorization Certificate (CoA), it was found that it had furnished information which is not of factual position.
Since, it falls under the category of an offense under Section 26(2) of the Payment and Settlement Systems Act, 2007, for the reason that a notice was issued to PPBL.”
“After reviewing the written responses and statements by the company during the personal hearing, PPBL determined that the allegations were true.”
RBI imposed a fine of Rs 1 crore on Paytm Payments Bank: “The reason for which the penalty was required to be imposed on the company.”
“Subsequently, the central bank, by an order dated October 1, directed PPBL to A monetary penalty of Rs 1 crore was imposed.”
On the other hand, if we talk about Western Union Financial Services, the RBI said that “The company had reported violation of the limit of 30 remittances per beneficiary during 2019 and 2020, and an application for compounding the violation.”
“In this regard, the RBI said that “This company should be fined after analyzing the compounding application for non-compliance and the statement of the company made during the personal hearing.”
However, RBI also said that “the penalty is based on deficiencies in regulatory compliance and is not intended to adjudicate on the validity of any transaction or agreement entered into by entities with their customers.”
Disappointed away from Nifty-Sensex, today the stock market opened up.
Thursday was a great day for Sensex. After two days of decline, the BSE Index opened at 61,557.94 points. More than two dozen stocks including SunPharma, Mahindra, SBI saw a rise.
Nifty 50 indexes also opened at 18,382.70 against yesterday’s close of 18,266.60 points. However, there was a decline for the second consecutive day on Wednesday.
The Sensex closed down by 456 points due to profit-booking by investors in stocks that reached higher price levels. Nifty also closed below the level of 18,300.
