penalty on payment system operators

RBI has imposed huge penalties on two payment system operators viz. Rs.10 million penalty on Paytm Payments Bank limited for not disclosing proper information to the authorities as per section 26(2) of the Payment & Settlement Systems Act. Another penalty of Rs.27,78,750/- on Western Union Financial Services Inc. for non compliance with certain provisions of RBI Master Directions on Money Transfer Service Scheme (MTSS).

What exactly is the nature of non compliance in case of Western Union is not specified but newspaper reports suggest that it is for breaching the ceiling of 30 remittances per beneficiary in the last two years.

You can read the RBI press release here.

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