MUMBAI: Reserve Bank of India has imposed a penalty of Rs 5.39 crore on Paytm Payments Bank Ltd for non-compliance with certain provisions, including Know Your Customer (KYC) norms.

The central bank also found non-compliance with certain provisions related to ‘RBI Guidelines for Licensing of Payments Banks’, ‘Cyber security framework in banks’ and ‘Securing mobile banking applications including UPI ecosystem’.

A special scrutiny from KYC/AML (Anti Money Laundering) perspective of the bank was conducted and a comprehensive system audit of the bank was conducted by auditors identified by RBI.

After examination of the reports, RBI in the statement said it found that Paytm Payments Bank failed to identify beneficial owner in respect of entities onboarded for providing payout services.

It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services, RBI added.

Further, the central bank said Paytm Payments Bank breached the regulatory ceiling of end of the day balance in certain customer advance accounts availing payout services.