Paytm Payment Bank fine: Heavy fine has been imposed on Paytm Payment Bank. The Financial Intelligence Unit of India (FIU-IND) has imposed a fine of Rs 5.49 crore on Paytm Payment Bank for money laundering violations.
Paytm Payment Bank fine: Paytm’s crisis is not subsiding, now the government has imposed a heavy fine on Paytm Payment Bank. The Financial Intelligence Unit of India (FIU-IND) has imposed a fine of Rs 5.49 crore on Paytm Payment Bank for money laundering violations.
Actually, the Financial Intelligence Unit of the Finance Ministry has imposed this penalty on Paytm Payments Bank for violating the rules under the Prevention of Money Laundering Act.
Money laundering case
In the press release issued by the Finance Ministry, giving information about this penalty on Paytm Payments Bank, it has been said that the Financial Intelligence Unit – India has detected some units and networks of Paytm Payments Bank for being involved in illegal activities like online gambling. Information was received. The money received from these illegal operations was routed through bank accounts to these units of Paytm Payments Bank. Due to which this fine has been imposed.
Earlier on January 31, the Reserve Bank of India (RBI) had taken major action against Paytm Payments Bank Limited. The central bank had ordered to close the banking services of Paytm by 29th February, after which the deadline has been extended to 15th March.
This advice from RBI for Paytm to run UPI
Actually, if Paytm UPI services are linked to Paytm Payment, then it will not work after March 15. If this service is to be continued then customers and merchants will have to link their Paytm UPI to some other bank. RBI has recently issued new guidelines regarding this. RBI has asked NPCI to review One 97 Communications Ltd’s request to become a third party application provider in the UPI system.
Actually, RBI has asked NPCI, the organization that oversees the operation of digital payments, to migrate the @paytm handle to other new banks. After which Paytm’s parent company One97 Communication Limited is in contact with 4-5 banks for this.
Paytm has chance till March 15
RBI has said that migration of UPI handle will be only for those customers and merchants whose UPI handle is linked to Paytm Payment Bank. This step of RBI will provide relief to those customers and merchants of Paytm Payment Bank whose UPI is linked to Paytm Payment Bank.
Paytm, along with Axis Bank, had applied to NPCI to act as a third party application provider for UPI business. Let us tell you, since UPI transactions happen through Paytm Payments Bank, Paytm is not currently classified as TPAP. On the other hand, 22 entities including Amazon Pay, Google Pay, Mobikwik, PhonePe and WhatsApp currently hold TPAP licenses.
It is worth noting that to keep any UPI account active, it is very important to link it to the bank account. Let us tell you that NCPI operates and monitors UPI transactions across the country. RBI says that if OCL gets the status of Third Party Application Provider (TPAP), then @paytm handle should be migrated seamlessly without causing any difficulty to the customers.
