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The penalty is due to non-compliance with certain provisions of the ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016', RBI Guidelines for Licensing of Payments Banks' read with ‘Enhancement of maximum balance at end of the day', ‘Cyber security framework in banks' read with ‘Guidelines on reporting of unusual cyber security incidents' and ‘Securing mobile banking applications including UPI ecosystem'.
RBI stated in its order, “This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.”
The company said that this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
One 97 Communications is the digital financial services firm which operates under the Paytm brand. Paytm is India's payment super app offering consumers and merchants comprehensive payment services.
The company reported reported a consolidated net loss of Rs 357 crore in Q1 FY24 as against a net loss of Rs 644.40 crore posted in Q1 FY23. Revenue from operations jumped 39.4% YoY to Rs 2,341.60 crore in the quarter ended 30 June 2023.
The scrip declined 0.43% to currently trade at Rs 953.50 on the BSE.
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