RBI imposes Rs 5.39 crore penalty on Paytm Payments Bank
New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of Rs 5.39 crore on Paytm Payments Bank Limited for non-compliance with certain provisions, including know your customer or ‘Know Your Customer’ (KYC) rules.
The RBI has observed that there were certain deficiencies in fully complying with certain provisions relating to securing mobile banking applications, including the RBI guidelines for licensing payments banks, cyber safety framework in banks and the UPI ecosystem.
According to an official statement, a special investigation was conducted from the bank’s KYC/anti-money laundering perspective and a comprehensive audit of the bank was carried out by auditors selected by the RBI. “After inspecting the report, it was found that Paytm Payments Bank could not identify the beneficiaries about the entities involved in providing payment services,” RBI officials said.