Why was Paytm Banned?
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| globalinfo9: Banned Paytm |
It seems that the Reserve Bank of India (RBI) has repeatedly warned Paytm Payments Bank (PPBL) that there are problems in internal risk management, but the company has failed to correct them. RBI has banned the company from carrying out major operations after the 20th of this month, especially because the company has not responded much in the matter of transactions involving the interference of Politically Connected Persons (PEPs). An English news agency quoted two people connected with the developments. Usually, PEs are related to politicians or senior officials.
In the audit conducted by RBI on PPBL, it seems that many errors were found in Rumpeni's risk management system. He said that not only was there no proper system to monitor the PEPs, but also that PPBL had failed to report the suspicious transactions to the Financial Intelligence Unit (SIU) of the government. He said that the RBI observations are not aimed at any single PEP.. They are only about improving risk management in the bank. A Paytm representative said on this matter, 'We are following the regulatory guidelines
They said that we have a proper system and process. Formation of the advisory committee: In the wake of the RBI ban on PPBL, an advisory committee is being formed under the leadership of former SEBI chairman M. Damodaran, Paytm brand owner One07 Communications said.
Paytm on Friday said in a filing to stock exchanges that it will provide advice on compliance and regulatory issues in the company. Former Andhra Bank MD R Ramachandran and former ICAI President MM Chitale are on this committee.
Two out of the PPBL board:
Two independent directors have resigned from the PPBL board. Bank of Amu Rika, a former executive of PWC Shinjini Kumar, and former deputy MD of ACI Manju Aggarwal are on this list, an English news magazine revealed in its story no. It said that Shinjini's resignation had already been accepted and someone else had been chosen instead.
Buzz in Airtel Payments Bank:
After the RBI ban on PPBL that users should not make deposits/cashes after February 29 in user accounts, wallets, and Postages, the noise in Airtel Payments Bank has increased. In the past few days, the number of people applying online for bank accounts and Postages has increased massively, Rampeni CEO Anubrata Biswas said. He said that these have increased 5-7 times compared to January. Paytm e-commerce name change: Paytm e-commerce has changed its name to Pai Platfacts. It seems that an application for name change was made less than three months ago, but it was approved by the Registrar of Companies on February 8.
* The company acquired Bibbila, a seller platform at ONTC.
About Paytm Company:
Paytm is an Indian digital payment and financial services company headquartered in Noida, India. It was founded in August 2010 by Vijay Shekhar Sharma and initially started as a platform for mobile recharging and bill payments. Over the years, Paytm has diversified its services to include a wide range of financial products and services, including digital wallets, payment gateways, online shopping, ticket booking, and more.
Paytm's mobile wallet service lets users store money and securely make online transactions. It has become one of the most popular digital payment platforms in India, especially after the demonetization drive in 2016, which led to a surge in digital payments across the country.
In addition to its wallet service, Paytm offers various financial products such as Paytm Payments Bank, which provides savings accounts, debit cards, and digital banking services. It also offers services like Paytm Money for mutual fund investments, Paytm Insurance, Paytm Mall for online shopping, and Paytm Travel for booking flights, trains, buses, and hotels.
Paytm has grown into one of India's leading fintech companies and has attracted significant investment from various sources, including Alibaba Group, SoftBank, and Berkshire Hathaway. As of my last update in January 2022, Paytm was preparing for its initial public offering (IPO), which was expected to be one of the largest IPOs in India's history.
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