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India
oi-Madhuri Adnal
New Delhi, Oct 21: The Reserve Financial institution of India (RBI) has imposed a financial penalty of Rs 1 crore on Paytm Funds Financial institution and Rs 27.78 lakh on Western Union Monetary Companies for deficiencies in regulatory compliance, in keeping with the central financial institution, is an offence underneath Part 26 (2) of the Funds and Settlement Act.
A press release issued by the RBI at present learn, “The Reserve Financial institution of India (RBI) had, by an order dated October 01, 2021, imposed a financial penalty of Rs1 crore (Rupees one crore solely) on Paytm Funds Financial institution Restricted (PPBL), for an offence dedicated of the character referred to in Part 26 (2) of Cost and Settlement Techniques Act, 2007 (PSS Act).”
It additional stated, “A Compounding Order dated October 7, 2021, was additionally issued to Western Union Monetary Companies Inc (WUFSI), a Cash Switch Service – cross-border inbound service (buyer to buyer solely) operator – imposing a penalty of ₹27,78,750 for non-compliance with sure provisions of the instructions contained within the Grasp Route on Cash Switch Service Scheme (MTSS Instructions) dated February 22, 2017.”
RBI Financial Coverage October 2021: Key highlights
Thereafter, the central financial institution by an order on October 1 imposed a financial penalty of Rs 1 crore on PPBL.
As regards Western Union Monetary Companies, the RBI stated the corporate had reported cases of breach of the ceiling of 30 remittances per beneficiary throughout 2019 and 2020 and filed an utility for compounding of the violation.
“RBI has decided that the non-compliance warranted the imposition of a financial penalty after analyzing the compounding utility, and oral submissions made through the private listening to,” it stated.
The RBI, nevertheless, added the penalties are based mostly on deficiencies in regulatory compliance and are usually not meant to pronounce upon the validity of any transaction or settlement entered into by the entities with their clients.
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