What are the consequences faced by Paytm Payments Bank for violating norms
RBI has imposed a penalty of Rs 5.39 crore on Paytm Payments Bank due to a series of norm violations.
The consequences faced by Paytm Payments Bank for violating norms and the penalty imposed by RBI include:
- A penalty of Rs 5.39 crore imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank.
- The penalty was levied due to several violations of regulatory norms, including opening accounts without proper authorization and non-compliance with certain customer identification requirements.
- RBI found that the bank had allowed customers to open accounts using the Aadhaar-based e-KYC process without obtaining their informed consent.
- There were also discrepancies in the adherence to the 'know your customer' (KYC) norms and anti-money laundering guidelines.
- These violations raised concerns over the safety and security of customer information and adhering to the necessary regulations set by the RBI.
- The fine levied on Paytm Payments Bank serves as a warning to ensure compliance with regulatory norms and to protect the interests of the customers and the overall financial system.
- The bank is required to take corrective measures to rectify the identified deficiencies and further strengthen its regulatory compliance processes.
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a year ago