India, Oct. 21 -- The Reserve Bank of India (RBI) has imposed a penalty of INR 1 Cr on Paytm Payments Bank (PPBL) for violating provisions of the Payment and Settlement Systems Act, 2007 (PSS Act).

In a statement, RBI said that PPBL was penalised on October 1, for an offence committed under Section 26 (2) of the PSS Act. "On examination of PPBL's application for issue of final Certificate of Authorisation (CoA), it was observed that PPBL had submitted information which did not reflect the factual position," it said.

According to the RBI, there was a personal hearing, where after reviewing the written responses and oral submissions, where the charge was substantiated, RBI imposed the fine.

Under Section 26 (2) of the PSS Act, if a compa...