DNA Exclusive: Is Paytm Really Going To Be Banned? Analysis Of RBIs Action

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DNA Exclusive: Is Paytm Really Going To Be Banned? Analysis Of RBIs Action


NEW DELHI: Paytm, the favored fintech firm, is dealing with a significant setback because the Reserve Bank of India (RBI) has cancelled the companies of its Paytm Payments Bank (PPBL) attributable to some irregularities. This has left greater than 300 million Paytm customers in a dilemma, as they ponder whether they may be capable of use the Paytm app for his or her transactions or not. 

In as we speak’s DNA, Zee News analysed the Reserve Bank Of India’s clampdown towards fintech big Paytm.

However, all these companies will probably be discontinued from 29 February, as per the RBI’s order. The RBI has invoked part 35A of the Banking Regulation Act, 1949, and directed PPBL to cease its operations and settle with its clients by 15 March. The settlement will embody issues associated to curiosity, cashback or refund on the accounts.

The RBI’s motion got here after it discovered some irregularities in PPBL, based mostly on audit studies. The RBI didn’t disclose the character of the irregularities, however it’s speculated that they might be associated to the violation of the norms for funds banks. Payments banks are a brand new class of banks that may settle for deposits as much as Rs 1 lakh per buyer, however can’t lend cash or difficulty bank cards. They can solely provide fundamental banking companies, equivalent to financial savings accounts, present accounts, remittances and invoice funds.

Watch Tonight’s DNA for an in depth evaluation on Reserve Bank Of India’s clampdown towards fintech big Paytm.





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