RBI fines Paytm Payments Bank Rs 5.4 crore over KYC lapses

Paytm Payments Bank was fined Rs 5.39 crore by the Reserve Bank of India for breaking the Know Your Customer (KYC) rules.

According to the regulator, the payments bank neglected to follow several licencing requirements, delayed in reporting unexpected cyber security occurrences, and failed to safeguard mobile banking applications, including the UPI ecosystem.

The RBI stated that its action was based on regulatory compliance problems and was not meant to judge the legality of any transaction or arrangement made by the bank with its clients. The bank was previously served with a notice instructing it to provide justification as to why a penalty should not be levied against it for failing to follow the abovementioned guidelines.

"Our associate PPBL has the highest regards for the extant RBI regulatory framework and is taking steps to ensure complete adherence to the supervisory instructions issued in this regard. PPBL is also currently in the process of adhering to other instructions of RBI," Paytm informed the stock exchanges overnight.