Mumbai: The Reserve Bank of India (RBI) imposed a penalty of Rs 5.39 crore on Paytm Payments Bank on October 12, 2023, for non-compliance with multiple regulatory guidelines, including lapses in customer identification procedures, failure to monitor payout transactions, and exceeding the regulatory ceiling for the end-of-day balance in certain customer advance accounts availing payout services.
The RBI also found that Paytm Payments Bank delayed reporting a cybersecurity incident and failed to secure its mobile banking applications and the UPI ecosystem.
The RBI’s action is a reminder to all financial institutions of the importance of complying with all regulatory guidelines. It is also a warning to Paytm Payments Bank that it needs to take immediate steps to address the deficiencies identified by the RBI.
Paytm Payments Bank has said that it is taking the RBI’s findings seriously and is working to implement all necessary corrective measures.