RBI fines Paytm Payments Bank for breach of norms

The RBI has slapped a Rs 5.39 crore nice on Paytm Payments Bank for not complying RBI tips associated to know your buyer (KYC) norms and never reporting incidents of cyber safety breaches in time.

The RBI stated {that a} particular scrutiny report and a complete system audit report has revealed non-compliance with norms by Paytm Payments Bank on the next grounds:

The financial institution did not establish helpful proprietor in respect of entities onboarded by it for offering payout companies.

It didn’t monitor payout transactions and perform danger profiling of entities availing payout companies.

The financial institution breached the regulatory ceiling of finish of the day steadiness in sure buyer advance accounts availing payout companies.

Reporting a cyber safety incident with delay.

Failure to implement gadget binding management measure associated to ‘SMS supply receipt verify’, and

Paytm Bank’s V-CIP infrastructure failed to forestall connections from IP addresses outdoors India.

The RBI additionally stated that the motion relies on the deficiencies in regulatory compliance and isn’t meant to pronounce upon the validity of any transaction or settlement entered into by the financial institution with its clients.

(With inputs from IANS)