RBI Slaps Penalty on Paytm and Western Union

The Reserve Bank of India (RBI) has informed that it had imposed a monetary penalty of Rs 1 crore on Paytm Payments Bank Limited (PPBL), on 1^st October, 2021 for an offence committed in Payment and Settlement Systems Act, 2007 (PSS Act).

Further, on 7^th October, 2021 it had also imposed a penalty of Rs 27,78,750 on Western Union Financial Services Inc (WUFSI), a Money Transfer Service – cross-border in-bound service operator for non-compliance with certain provisions of the directions contained in the Master Direction on Money Transfer Service Scheme (MTSS Directions).

However, this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.