{"id":1143,"date":"2023-10-12T19:54:48","date_gmt":"2023-10-12T14:24:48","guid":{"rendered":"https:\/\/asia.businessupturn.com\/?p=1143"},"modified":"2023-10-12T19:58:23","modified_gmt":"2023-10-12T14:28:23","slug":"rbi-penalizes-paytm-payments-bank-%e2%82%b95-39-crore-fine-imposed","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/asia\/south-asia\/india\/rbi-penalizes-paytm-payments-bank-%e2%82%b95-39-crore-fine-imposed\/1143\/","title":{"rendered":"RBI Penalizes Paytm Payments Bank: \u20b95.39 Crore Fine Imposed"},"content":{"rendered":"<p>On Thursday, the Reserve Bank of India penalized Paytm Payments Bank guidelines, among others. The penalty has been imposed by the RBI with a monetary fine of \u20b95.39 crore due to their failure to adhere to specific regulations concerning KYC (Know Your Customer) and cybersecurity authority granted under Section 47A(1)(c) along with Section 46(4)(i) of the Banking Regulation Act, 1949.<\/p>\n<p>This enforcement action has been taken in response to the bank\u2019s failure to meet regulatory requirements. It is not intended to pass judgment on the validity of any transactions or agreements the bank has with its customers. Furthermore, the central bank identified instances of non-compliance with various regulations, including those pertaining to \u2018RBI Guidelines for Payments Bank Licensing,\u2019 \u2018Cybersecurity Framework in Banks,\u2019 and \u2018Securing Mobile Banking Apps,\u2019 which also encompass the UPI ecosystem.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8 RBI imposes Rs 5.39 crore fine on Paytm Payments Bank <\/p>\n<p>The fine has been imposed because Paytm did not complete proper KYC for companies using its services and also delayed reporting of a cyber security incident <a href=\"https:\/\/t.co\/Xoc61xOD5b\">pic.twitter.com\/Xoc61xOD5b<\/a><\/p>\n<p>\u2014 The Arc (@thearc_hq) <a href=\"https:\/\/twitter.com\/thearc_hq\/status\/1712463996648071437?ref_src=twsrc%5Etfw\">October 12, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The RBI emphasized that this measure is a result of the bank\u2019s failure to meet regulatory compliance standards and is not meant to pass judgment on the legitimacy of any transactions or agreements between the bank and its customers.<\/p>\n<p><strong>Why did this happen?<\/strong><\/p>\n<p>According to the RBI, they conducted a thorough review focused on KYC (Know Your Customer) and AML (Anti-Money Laundering) aspects of the bank, along with a comprehensive audit of the bank\u2019s systems. The assessment of these reports and related communications uncovered instances of non-compliance.<br \/>\nThere are some guidelines of the Reserve Bank regarding Payments Bank. These include increasing the maximum balance at the end of the day, cyber security framework in the bank, guidelines on reporting unusual cyber security incidents, and securing the mobile banking application with the UPI ecosystem.<\/p>\n<p>The RBI\u2019s examination found that Paytm Payments Bank did not correctly identify the beneficial owner for entities that had been onboarded for payout services. Additionally, the bank failed to monitor payout transactions and conduct risk assessments for the entities using payout services.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The RBI emphasized that this measure is a result of the bank\u2019s failure to meet regulatory compliance standards and is not meant to pass judgment on the legitimacy of any transactions or agreements between the bank and its customers.<\/p>\n","protected":false},"author":367,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[404,405,402,403],"class_list":["post-1143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","tag-kyc","tag-monetary-penalty","tag-paytm","tag-reserve-bank-of-india"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/1143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/users\/367"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/comments?post=1143"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/1143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media\/1151"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media?parent=1143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/categories?post=1143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/tags?post=1143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}