Paytm Payments Bank into trouble 2024 Reserve Bank of India (RBI) has taken action on Paytm Payments Bank. According to media reports, RBI has found irregularities related to money laundering and know-your-customer (KYC) in Paytm.
- A few months ago, RBI had alerted the Enforcement Directorate (ED) about this breach in Paytm. But Paytm continued to violate the rules. Now RBI has announced a ban on Paytm Payment Bank.
- Many services of Paytm will be closed from 29th February. Paytm has about 17 percent share in the payment market.
- In such a situation, this restriction of RBI has affected a large section of people. Crores of users have been affected by RBI’s action.
- There is still confusion among many people. This action of RBI has also affected the shares of Paytm.
- Paytm shares are continuously hitting lower circuits. Even today, Paytm shares are trading at the lower circuit of Rs 438.50 with a decline of 10 percent. Heavy selling by investors is being seen in shares.
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Paytm Payments Bank into trouble 2024 :Why was action taken against Paytm Payment Bank?
According to media reports, KYC was not followed in lakhs of accounts of Paytm Payments Bank. Meaning the bank did not know who its customers were. This increases the risk of fraud and money laundering. According to the report, Paytm Payments Bank Limited (PPBL) had lakhs of accounts without KYC. There were many such cases in which one PAN card was used to open multiple accounts.
Transactions worth crores of rupees have taken place from these accounts which were more than the rules. There is also a possibility of money laundering due to this. According to the report, Paytm Payments Bank has about 35 crore e-wallets. Of these, about 31 crore are inactive. There are lakhs of accounts in which KYC has not been done. PPBL is also accused of giving wrong and incomplete information to RBI.
Suspicious transactions have been detected through these accounts. RBI has taken action on this basis. Now if any new allegation comes to light then the Enforcement Directorate will investigate against the company.
Paytm Payments Bank into trouble 2024 : Rule 35A of the Banking Regulation Act
According to RBI, Paytm’s audit report and reports of external auditors have found that Paytm has continuously violated the rules. After this, action has been taken against Paytm Payment Bank under Rule 35A of the Banking Regulation Act. Now after February 29, Paytm Payments Bank customers will not be able to use any credit-deposit, transaction, fast tag and transaction. Paytm Payments Bank Limited customers will not be able to use it after February 29. RBI has asked Paytm to settle the nodal account by March 15.
Paytm Payments Bank into trouble 2024 : This service will remain operational
All the restrictions of RBI are on Paytm Payments Bank. Therefore, Paytm (Paytm QR, Insurance, Loan Disbursement, Soundbox and Card Machine etc.) will not be affected. All the businesses connected with Payments Bank will be affected. RBI has directed that Paytm will have to provide full facility to its customers to withdraw the balance and use it. This facility will also be available for those customers who have savings and current accounts of Paytm or are using Fast Tag. All services of Paytm will continue to work normally after February 29.
Paytm Payments Bank into trouble 2024 : What has the central bank said?
RBI has taken action against Paytm Payments Bank under Section 35A of the Banking Regulation Act, 1949. Even before this, the central bank had asked Paytm Payments Bank to stop adding new customers in March 2022. At the same time, after the strictness of RBI, Paytm has also given clarification on this entire matter. Paytm said that the company will follow the instructions of RBI and will take immediate steps for the same.
Paytm Payments Bank into trouble 2024 : Paytm stock fell face down
On February 1, 2024, Union Minister Nirmala Sitharaman was presenting the budget in Parliament. On the other hand, as soon as the market opened, Paytm shares fell sharply. One97 Communications Ltd, which owns the Paytm brand, saw a huge fall in its shares on February 1 and 2.
Paytm Payments Bank into trouble 2024 : Who is the real owner of Paytm?
It is known that Paytm Payments Bank Limited (PPBL) is a subsidiary of One97 Communications Limited (OCL). At the same time, One97 Communications has direct and its subsidiary company
