Over the last few days, the Reserve Bank of India (RBI) has been slapping huge fines on several banks as well as institutions operating in digital form. The RBI has slapped heavy fines on Paytm Payments Bank, one of the leading payment banks in the country, after penalizing big banks like HDFC and State Bank of India (SBI). The move by the RBI is said to be a major blow to Paytm Payments Bank.
The RBI has imposed a fine of Rs 1 crore on SBI, the country's largest state-owned bank, for non-compliance with regulatory guidelines. After this, Paytm Payments Bank Limited (PPBL) has been fined Rs 1 crore by the RBI for violating the rules. Penalties have been imposed for violating the Payment and Settlement Act. The Reserve Bank has issued a statement in this regard stating that the case of Paytm Payments Bank is related to violation of the rules of Payment and Settlement System Act.On examination of PPBL’s application for issue of final Certificate of Authorisation (CoA), it was observed that PPBL had submitted information which did not reflect the factual position. As this was an offence of the nature referred to in Section 26 (2) of the PSS Act, a notice was issued to PPBL. After reviewing the written responses and oral submissions made during the personal hearing, the RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty, the RBI said in a statement.