RBI slaps 1 crore penalty on Paytm Payments Bank
- The Reserve Bank has imposed a penalty of INR 1 crore on Paytm Payments Bank Limited (PPBL)
The Reserve Bank of India has imposed a penalty of INR 1 crore on Paytm Payments Bank Limited (PPBL) and INR 27.78 lakh on Western Union Financial Services for non-compliance with certain directions.
In a release on Wednesday, the RBI said on examination of PPBL's application for issue of final Certificate of Authorisation (CoA), it was observed that it had submitted information which did not reflect the factual position.
"As this was an offence of the nature referred to in Section 26 (2) of the Payment and Settlement Systems Act, 2007, a notice was issued to PPBL.
"After reviewing the written responses and oral submissions made during the personal hearing, the RBI determined that the aforementioned charge was substantiated and warranted the imposition of a monetary penalty," it said.
Thereafter, the central bank by an order on October 1 imposed a monetary penalty of INR 1 crore on PPBL.
As regards Western Union Financial Services, the RBI said the company had reported instances of breach of the ceiling of 30 remittances per beneficiary during 2019 and 2020, and filed an application for compounding of the violation.
"RBI determined that the ... non-compliance warranted the imposition of a monetary penalty after analysing the compounding application, and oral submissions made during the personal hearing," it said.
The RBI, however, added the penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.
Paytm earmarks ₹100 cr for marketing campaigns during festive season
Digital payments and financial services firm Paytm on Monday said it has earmarked ₹100 crore for marketing campaigns during the ongoing festive season, which include cashback offers, promotion of UPI, postpaid service of 'Buy Now, Pay Later' and wallet businesses.
The company has started 'Paytm Cashback Dhamaka' as part of the marketing campaign for users in all districts of India and with special focus on the states of Gujarat, Maharashtra, Andhra Pradesh, Telangana and Karnataka.
"The company and its partners will allocate ₹100 crore for marketing activities during the festive season. These campaigns will be aligned to promote digital payments in India and educate users about Paytm UPI for money transfers, Paytm Wallet and Paytm Postpaid (Buy Now, Pay Later) for spends, to drive financial inclusion across the country," Paytm said in a statement. The campaign will continue till November 14.
"During the peak festive season, everyday 10 lucky winners will win ₹1 lakh each, 10,000 winners will get ₹100 cashback, while another 10,000 users will win ₹50 cashback. Closer to Diwali (November 1-3) users can win up to ₹10 lakh daily," the statement said.