Mumbai, October 12: The RBI has slapped a Rs 5.39 crore fine on Paytm Payments Bank for not complying RBI guidelines related to know your customer (KYC) norms and not reporting incidents of cyber security breaches in time. The RBI said that a special scrutiny report and a comprehensive system audit report has revealed non-compliance with norms by Paytm Payments Bank on the following grounds: The bank failed to identify beneficial owner in respect of entities onboarded by it for providing payout services. Paytm UPI SDK Launched for Merchant Apps: New Product Promises Fail-Proof, One-step UPI Payments

It did not monitor payout transactions and carry out risk profiling of entities availing payout services. The bank breached the regulatory ceiling of end of the day balance in certain customer advance accounts availing payout services. Reporting a cyber security incident with delay Failure to implement device binding control measure related to 'SMS delivery receipt check', and Paytm Bank’s V-CIP infrastructure failed to prevent connections from IP addresses outside India. Paytm Logs Rs 7,990 Crore Revenue in FY 2023, Becomes India’s Highest Earning New-Age Firm

The RBI also said that the 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.

(The above story first appeared on LatestLY on Oct 12, 2023 11:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).