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RBI Took Action Against Paytm For Continued Non-Compliance And Allotted Time For Corrective Measures

<p><strong>Paytm News for Today:</strong> RBI Deputy Governor Swaminathan said on Thursday that action against Paytm was initiated as a result of “persistent non-compliance” and that sufficient time had been provided for remedial measures.</p>
<p><img decoding=”async” class=”alignnone wp-image-391658″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-rbi-took-action-against-paytm-for-continued-non-compliance-and-allotted-time-for-c.jpg” alt=”theindiaprint.com rbi took action against paytm for continued non compliance and allotted time for c” width=”989″ height=”659″ title=”RBI Took Action Against Paytm For Continued Non-Compliance And Allotted Time For Corrective Measures 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-rbi-took-action-against-paytm-for-continued-non-compliance-and-allotted-time-for-c.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-rbi-took-action-against-paytm-for-continued-non-compliance-and-allotted-time-for-c-150×100.jpg 150w” sizes=”(max-width: 989px) 100vw, 989px” /></p>
<p>At a press conference held by RBI Governor Shaktikanta Das after the MPC decision, Swaminathan said that the central bank will take appropriate action as needed moving forward.</p>
<p>The Reserve Bank of India (RBI) has taken a number of actions against PPBL in response to non-compliance, including banning the company from providing any services related to deposits, prepaid cards, or e-wallets after February 29.</p>
<p>Additionally, the organization has been told to cease onboarding new clients.</p>
<p><strong>“RBI To Address Paytm Concern”</strong></p>
<p>On Wednesday, Financial Services Secretary Vivek Joshi said that the Reserve Bank should handle the Paytm problem and that the government is now out of the picture.</p>
<p>In addition, he said that there are no issues with systemic stability and that Paytm Payments Bank Ltd. (PPBL) is a little financial organization.</p>
<p>“The regulator is the one who took action. They control the banking industry. As far as the measures against Paytm are concerned, the government has remained neutral. In an interview with PTI, Joshi said, “And we think that RBI had to have taken the action in the overall interest of the consumer and the economy.”</p>
<p>He said that authorization for investment from China has been requested with relation to Foreign Direct Investment (FDI) in Paytm’s payment aggregator business.</p>
<p>“Because this is an interministerial procedure, the application is being reviewed. It’s being thought about,” he said.</p>
<p>In response to a question about whether the RBI’s move against PPBL raises any worries about financial stability, Joshi said that because the bank is tiny, there aren’t any issues with systemic stability.</p>
<p>“Customers who currently have accounts with the payments bank will need to move their accounts. As far as I can tell, the bank will not be moving the accounts. The onus is on the consumers,” he said.</p>
<p>The meeting between Paytm founder Vijay Shekhar Sharma and Finance Minister Nirmala Sitharaman took place on Tuesday against the background of RBI measures.</p>
<p>He was informed, according to sources, that Paytm must deal with RBI.</p>
<p>Millions of non-KYC (know your customer) accounts are allegedly held by PPBL, and thousands of these accounts were opened using a single PAN (permanent account number).</p>
<p>According to the sources who spoke to PTI, there were other cases when the overall amount of transactions exceeded regulatory thresholds in minimum KYC pre-paid instruments by crores of rupees, prompting suspicions of money laundering.</p>
<p>An expert estimates that PPBL has around 35 crore e-wallets. Of these, roughly 4 crore would be operational with either no balance or a minor balance, and about 31 crore would be inactive.</p>
<p>It is alleged that an abnormally large number of inactive accounts were exploited as mule accounts. According to the analyst, there were significant inconsistencies in KYC compliance, putting clients, depositors, and wallet holders at great danger.</p>

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