This penalty is related to the offence committed under Section 26 (2) of Payment and Settlement Systems Act 2007, the RBI mentioned in its press release.
On October 20, the RBI stated that it has imposed a penalty of Rs 1 crore under the PSS Act on Paytm Payments Bank Ltd for certain violations.
The RBI stated that before authorizing the back with the final Certificate of Authorization they found some information that did not reflect the factual data. The bank also stated that the penalty was warranted.
On the other hand, the RBI imposed a Rs 27.8 lakhs penalty on Western Union Financial Services for non-compliance with specific provisions. The Western Union Financial Services is a money transfer service and the RBI said they reported a breach of 30 payments per account during 2019 and 2020 and filed a compounding application for the same.
RBI analysed it and it was a non-compliance that warranted imposition of penalty.
Recently SBI had imposed Rs. 1 crore penalty for non-compliance. Check the story here.
It was a similar case like the Western Union Financial Services where the RBI found loopholes in the regular compliances of the bank.
The RBI works diligently when it comes to compliances and violations and also keeps the citizens of India aware of the frauds that can be committed in online transactions and much more.
Through various public service advertisements, they have tried to make the audience aware of frauds and fakes.
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