Paytm Payments Bank has been fined Rs 5.4 crore by the RBI for failing to comply with KYC instructions and other cyber security and payments bank requirements.
The RBI undertook a special investigation into KYC/AML (anti-money laundering). Several areas of noncompliance were discovered during the audit, including failure to identify beneficial owners of entities onboarded for providing payout services, a lack of monitoring of payout transactions and risk profiling, exceeding regulatory balance ceilings, failing to report a cybersecurity incident on time, and failing to implement device binding control measures related to SMS delivery receipts.
The RBI's video-based customer identification procedure (V-CIP) infrastructure was also down, and it was unable to identify anyone logging in from outside the nation. A show-cause notice was sent to the bank. The RBI found that the charge of noncompliance was proved after reviewing its response to the notification and its comments during a personal hearing.