The Reserve Bank of India (RBI) has given Paytm Payments Bank Limited a fine of Rs 5.39 crore because they didn’t follow some important rules, like the Know Your Customer (KYC) rules.
This news was shared by the country’s Central Bank today.
Problems with keeping the internet safe were discovered in banks
The Reserve Bank discovered that some rules were not completely followed when it came to giving licenses to payment banks, making sure banks are safe online, and keeping mobile banking apps secure, including UPI.
Auditors did a thorough check of Paytm Payments Bank
As per the official statement, they did a special investigation to check if the bank was following the rules about knowing their customers and preventing money laundering.
The bank also had a full review by auditors chosen by RBI. According to the RBI statement, after looking at the report, they found that Paytm Payments Bank couldn’t figure out who the people or companies getting payment services were.
RBI sends a notice to Paytm Payments Bank asking for an explanation
The statement mentioned that the bank didn’t watch over payment actions and didn’t look at the risks of places using their payment services.
The central bank also said that Paytm Payments Bank broke the rules about how much money some customers could have in their accounts at the end of the day.
Because of this, the bank got a notice asking them to explain what happened.
RBI fined the bank
When Paytm Payments Bank responded, RBI decided that the accusation of not following the RBI rules was true. As a result, Paytm Payments Bank had to pay a financial penalty.
