A monetary penalty of Rs 5.39 crore on Paytm Payments Bank imposed by the Reserve Bank of India (RBI) for violating Know Your Customer norms, among others.
The Paytm bank had failed to meet certain regulatory provisions under Know Your Customer (KYC) as well as the norms for increasing the maximum balance at the end of the day as stated in the licensing conditions of payments banks.
The bank was also found to be non-compliant with the ‘Cyber Security Framework in Banks’, ‘Guidelines on Reporting of Unusual Cyber Security Incidents’, and ‘Securing Mobile Banking Applications including the UPI Ecosystem’.
RBI had conducted a special investigation from the KYC/Anti-Money Laundering (AML) perspective of the bank.
From March 2022, Paytm Payments Bank has been barred from adding new customers by the RBI due to supervisory concerns.
The bank was directed by the regulator to appoint an IT audit firm to conduct a comprehensive system audit of its IT systems.
RBI had said the onboarding of new customers by Paytm Payments Bank Ltd will be granted after reviewing the report of the IT auditors.
