- On October 12, a monetary penalty of Rs 5.39 crore was imposed on Paytm Payments Bank by the Reserve Bank of India (RBI) for violating Know Your Customer norms.
- The bank had failed to meet the norms for increasing the maximum balance at the end of the day as prescribed in the licensing conditions of payments banks along with certain regulatory provisions under Know Your Customer (KYC).
- Paytm Bank was also found to be non-compliant with the 'Cybersecurity Framework in Banks', 'Guidelines on Reporting of Unusual Cybersecurity Incidents' and 'Securing Mobile Banking Applications, including the UPI Ecosystem'.
- RBI had conducted a special investigation of the bank from KYC/Anti-Money Laundering (AML) perspective.
- From March 2022, Paytm Payments Bank is barred from adding new customers due to supervisory concerns by the RBI.
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Economics
