RBI imposes curbs on Paytm Payments Bank due to inadequate KYC
By MYBRANDBOOK
One of the major reasons that the Reserve Bank of India imposed stringent curbs on Paytm Payments Bank on Jan. 31 is reportedly due to inadequate Know-Your-Customer procedures which led to transactions worth crores of rupees. Material lapses in the conduct of the payments bank has resulted in supervisory concerns from the RBI. Over 1,000 users were found to have linked the same PAN to their accounts.
RBI is concerned that some of the accounts could have been used for money laundering. As well as informing the Enforcement Directorate, the RBI has sent its findings to the ministry of home affairs and the prime minister's office.
The Enforcement Directorate will probe Paytm Payments Bank if any evidence of illegal activity is found, Revenue Secretary Sanjay Malhotra.
There were also reports of non-disclosure of major transactions within the group and associated parties, further intensifying regulatory worries. The central bank's scrutiny also unearthed loopholes in the governance standards, particularly in the linkage between Paytm Payments Bank and its parent company, One97 Communications Ltd.
Transactions routed through the parent app of Paytm raised data privacy concerns, leading to the RBI's decision to halt transactions through Paytm Payments Bank. While user deposits in savings accounts, wallets, FASTags, and NCMC accounts are not immediately affected, the company will have to rely on third-party banks for its operations until February 29.
Following the RBI's notice, Paytm stock experienced a sharp decline, plummeting 36% over two days and wiping $2 billion off its market value.
BREAKING NEWS
TECHNO TRENDS
Ola Electric Faces Scrutiny By SEBI
Ola Electric Mobility Limited has received an administrative warning from...
Microsoft announces US $3bn investment to strengthen India's c
During his visit to India, Microsoft Chairman and CEO Satya Nadella has t...
Parliamentary panel pulls up IT ministry for underutilizing se
A parliamentary panel on Communications and IT has pulled up the MeitY fo...
GST Council likely to reduce tax on food delivery to 5%
The Goods and Services Tax (GST) Council is reportedly considering a prop...
E-Magazine
TECHNOTAINMENT
Pushpa 2 leaks online after recording highest pre-sales in Ind
Pushpa 2, which is one of the most anticipated films of the year, has had a
Eloelo teams up with Elvish Yadav for India's biggest digital
Eloelo, India’s leading platform for live entertainment and creator-drive
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
AMD Pensando driving innovation in the DPU architecture space
AMD Pensando stands out in the DPU (Data Processing Unit) market with its u
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
BPE INDIA PVT. LTD.
LUMINOUS POWER TECHNOLOGIES PVT. LTD.
VERSA NETWORKS INDIA PVT. LTD.
PRAMA HIKVISION INDIA PRIVATE LIMITED
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : NIKHIL RATHI
Co-founder & CEO of Web Werks, a global leader in Data Centers and Clo...
Icons Of India : NEERAJ MITTAL
He started his career as an IAS Officer in 1992. He has held various a...
Icons Of India : ALOK OHRIE
Alok Ohrie leads Dell Technologies’ India business, overseeing Sales...
PARTNER SPEAKERS
PSU
HPCL - Hindustan Petroleum Corporation Ltd.
HPCL is an integrated oil and gas company involved in refining, market...
BEL - Bharat Electronics Limited
BEL is an Indian Government-owned aerospace and defence electronics co...
DRDO - Defence Research and Development Organisation
DRDO responsible for the development of technology for use by the mili...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Satya Nadella, Chairman & CEO- Microsoft
Satya Nadella, the Chairman and CEO of Microsoft, recently emphasized ...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...
Indian Tech Talent Excelling The Tech World - Steve Sanghi, Executive Chair, Microchip
Steve Sanghi, the Executive Chair of Microchip Technology, has been a ...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
