RBI imposes Monetary Penalty on two Payment System Operators

Case Brief

RBI imposed a monetary penalty of ₹1 crore on Paytm Payments Bank Limited and a penalty of ₹27,78,750 on Western Union Financial Services Inc. RBI said PPBL had submitted information in its final CoA application that did not reflect the factual position, constituting an offence under Section 26(2) of the PSS Act. Western Union Financial Services Inc. was penalised for breaching the ceiling of 30 remittances per beneficiary in 2019 and 2020 and for non-compliance with the Master Direction on Money Transfer Service Scheme. The penalties were imposed under Sections 30 and 31 of the PSS Act, and RBI clarified that the action was based on regulatory compliance deficiencies and not intended to adjudicate customer transactions or agreements.