The Reserve Bank has imposed a fine of Rs 1 crore on them. Paytm Payments Bank Ltd. (PPBL) and Rs 27.78 lakh Western Union Financial Services for non-compliance with certain instructions. In a release on Wednesday, reserve Bank of India said on investigation PPBLIn the application for issuance of Final Certificate of Authority (COA), it was observed that he had furnished such information which did not reflect the factual position.

“As this was an offense of the nature mentioned in section 26(2) of the Payment and Settlement Systems Act, 2007, a notice was issued to PPBL.

“After reviewing the written responses and oral submissions made during the personal hearing, RBI determined that the above allegation was substantiated and warranted imposition of monetary penalty,” it said.

Subsequently, the central bank imposed a monetary penalty of Rs 1 crore on PPBL by an order dated October 1.

With regard to Western Union Financial Services, RBI said that the company had reported violation of the limit of 30 remittances per beneficiary during 2019 and 2020, and filed an application for compounding of the violation.

“RBI determined that … a monetary penalty should be imposed for non-compliance after analyzing the compounding application and the oral submissions made during the personal hearing,” it said.

RBI, however, said the penalty is based on deficiencies in regulatory compliance and is not intended to impinge on the validity of any transaction or agreement entered into by the entities with their customers.