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  • RBI Penalizes Paytm Payment Bank with Rs 5.39 crores for KYC Violations

    Published on October 13, 2023

    Mumbai: The Reserve Bank of India has imposed a monetary penalty of five crore and thirty-nine lakh rupees on Paytm Payments Bank Limited for violation of Know Your Customer (KYC) and a few other norms. RBI said, the bank had also violated certain provisions of ‘RBI Guidelines for Licensing of Payments Banks’, ‘Guidelines on reporting of unusual cyber security incidents’ and ‘Securing mobile banking applications including UPI ecosystem’.

    The apex bank informed that a special scrutiny from KYC perspective revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services. It also failed to identify beneficial owners in respect of entities onboarded by it for providing payout services.

    RBI further found that the bank breached the regulatory ceiling of ‘end of the day balance’ in certain customer advance accounts and delayed in reporting a cyber security incident.

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