Today: Jun 14, 2024

Paytm crisis: No Fintech can escape responsibility, warns union minister.

4 months ago

TLDR: Rajeev Chandrasekhar, the Minister for State for Electronics and Information Technology, has stated that fintech companies, including Paytm, are not exempt from regulatory oversight. This comes after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank for violating regulatory standards. Chandrasekhar emphasized that sectoral regulators have the authority to regulate entities within their respective sectors, including fintech companies. The RBI imposed restrictions on Paytm Payments Bank due to irregularities in Know Your Customer (KYC) procedures, which posed risks of data mishandling and money laundering. Paytm app will continue to function normally, but the future of Paytm Payments Bank remains uncertain.