On October 12, 2023, the Reserve Bank of India (RBI) fined Paytm Payments Bank for non-compliance with certain provisions of RBI guidelines related to Know Your Customer (KYC), cybersecurity, and more.

To know more, click here https://www.fcctimes.com/2023/10/12/paytm-payments-bank-slapped-with-%e2%82%b95-39-crore-fine-by-rbi-for-kyc-and-cybersecurity-violations/

The RBI imposed a penalty of USD 0.65 million on Paytm Payments Bank for multiple violations, including:

• Failure to identify the beneficial owner concerning entities onboarded for providing payout services.
• Neglecting to monitor payout transactions and conduct risk profiling of entities utilizing payout services.
• Breaching the regulatory ceiling of the end-of-day balance in specific customer advance accounts availing payout services.
• Reporting a cyber security incident with a delay.
• Inadequate implementation of the device binding control measure related to ‘SMS delivery receipt check.
• The Video-Based Customer Identification Process (V-CIP) infrastructure’s inability to prevent connections from IP addresses outside India.