RBI slaps Rs.5.4 cr fine on Paytm Payments Bank over non-compliance of guidelines related to KYC, cybersecurity
Paytm Payments Bank has been imposed with a fine of Rs.5.39 crore by RBI for not complying with RBI guidelines related to know your customer (KYC) norms and not reporting incidents of cyber security breaches in time.
The RBI said that a special scrutiny report and a comprehensive system audit report have revealed non-compliance with norms by Paytm Payments Bank on the following grounds:
- The bank failed to identify the beneficial owner with respect to entities onboarded by it for providing payout services.
- It did not monitor payout transactions and carry out risk profiling of entities availing payout services.
- The bank breached the regulatory ceiling of end-of-the-day balance in certain customer advance accounts availing payout services.
- Reporting a cyber security incident with a delay.
- Failure to implement device binding control measures related to ‘SMS delivery receipt check’.
- Paytm Bank’s V-CIP infrastructure failed to prevent connections from IP addresses outside India.
The RBI also said that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
[With Inputs from IANS]
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