RBI Imposes monetary penalty on Paytm Payments Bank: RBI has imposed a fine of Rs 1 crore on Paytm Payments Bank for violation of rules.
New Delhi: RBI Imposes monetary penalty on Paytm Payments Bank: RBI has slapped a fine on Paytm Payments Bank, one of the country’s leading payments banks. Actually, the Reserve Bank of India i.e. RBI (Reserve Bank of India) has slapped Paytm Payments Bank Ltd. for violation of rules. That is, PPBL has been fined one crore rupees. This penalty has been imposed for violation of Section 6(2) of Payment and Settlement. Let us tell you that recently the Reserve Bank had also imposed a penalty on SBI.
Know what the Reserve Bank said?
The Reserve Bank said on this matter that the case of Paytm Payments Bank is related to violation of the rules of Payment and Settlement System Act. On examination of Paytm Payments Bank’s application for issuance of final certificate of authorization, we found that Paytm Payments Bank had furnished information that did not reflect a factual position.
Error detected in the investigation
The Reserve Bank of India said in a statement that on examination of Paytm Payments Bank’s application for issuance of final certificate of authorisation, RBI found that Paytm Payments Bank had furnished information which did not reflect a factual position. RBI said, “Because this was in violation of Section 26(2) of the Payment and Settlement System Act, a notice was issued to Paytm Payments Bank.”
After due diligence, RBI found the allegations to be true after reviewing the written replies and oral information received during the personal hearing. After this, action was taken to impose fine on PPBL.
SBI also fined
The Reserve Bank of India (RBI) has recently imposed a penalty on the country’s largest public sector bank SBI. The RBI has imposed a hefty penalty of Rs 1 crore on the country’s largest lender State Bank of India (SBI) for not following the regulatory directions.
RBI has said in this matter that this penalty has been taken on behalf of SBI for not complying with the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select Financial Institutions) Directions 2016.
