Paytm Payments Bank’s independent director, Manju Agarwal, resigned from the board after an RBI order imposed restrictions on the financial institution’s operations.
The transfer comes within the wake of the regulatory order, which directed the financial institution to stop accepting deposits or top-ups in varied buyer accounts and devices after February 29.
“Paytm Payments Bank independent director Manju Agarwal has resigned from the company’s board after RBI order,” the supply mentioned.
Paytm Payments Bank, affiliated with One97 Communications Limited, has confronted regulatory scrutiny prior to now. The RBI had beforehand prohibited the financial institution from opening new accounts and wallets in 2018 resulting from supervisory issues, though these restrictions had been later lifted. However, subsequent points arose, together with failures in monitoring account exercise and non-compliance with KYC provisions.
RBI rejected Paytm Payments Services Ltd’s (PPSL) software to function as a fee aggregator on November 25, 2022. The banking regulator requested the agency to re-submit functions inside 120 days after it will get authorities approval for an funding made by OCL into PPSL as per FDI pointers.
The regulator requested PPSL to proceed operations with the situation that no new retailers must be onboard. After the completion of 120 days, RBI once more granted PPSL an extension, however with out eradicating the bar on new service provider onboarding.
On October 1, 2021, a penalty amounting to Rs 1 crore was imposed on PPBL for a violation of the Payment and Settlement Systems Act, 2007.
The RBI imposed a penalty of Rs 5.93 crore on PPBL on October 10, 2023, after it discovered a number of non-compliances, together with banks failure to establish helpful homeowners in respect of entities on-boarded by it for offering payout providers.
RBI discovered that PPBL didn’t monitor payout transactions and perform danger profiling of entities availing payout providers, breaching the regulatory ceiling of end-of-day stability in sure buyer advance accounts availing payout providers.
The banking regulator discovered that PPBL reported a cyber safety incident with delay and didn’t implement machine binding management measures associated to the ‘SMS supply receipt test’.
PBL video-based buyer identification course of infrastructure failed to forestall connections from IP addresses exterior India.
(With PTI inputs)
