thehawk_in50d ago
New Delhi, April 25 (IANS) The Confederation of All India Traders (CAIT) on Saturday hailed the decisive action taken by the Reserve Bank of India (RBI) in cancelling the licence of Paytm Payments Bank Limited (PPBL), seeking probe into the matter. This firm regulatory intervention is in the larger public interest and will help safeguard the hard-earned savings of millions of Indians who trusted the institution with their money, said the industry body in a statement. CAIT Secretary and BJP MP Praveen Khandelwal said that the RBI’s decision reflects the seriousness of repeated regulatory non-compliance, governance failures, and continued disregard for supervisory directions. It may be recalled that in 2024, the RBI had already imposed major restrictions on the banking operations of Paytm Payments Bank. However, despite earlier warnings and corrective opportunities, the institution appears to have failed to adequately address critical concerns, leading to the present action. Khandelwal appreciated RBI’s assurance to depositors that their funds remain safe and will be returned as per due process. “This assurance is important, especially for lakhs of small traders, shopkeepers, street vendors, hawkers, self-employed persons and women entrepreneurs who have been using Paytm extensively for day-to-day payments and digital transactions,” he said. CAIT had earlier cautioned that any regulatory action on Paytm Payments Bank could create financial inconvenience and transaction disruptions for a large number of micro and small users dependent on the platform. Therefore, it has urged the authorities to ensure a smooth transition mechanism so that such users do not suffer unnecessary hardship, said the industry body. CAIT National President, BC Bhartia, demanded a comprehensive investigation into the handling, storage, and location of the vast financial and consumer data collected through Paytm’s platforms over the years. The RBI on Friday cancelled the licence of Paytm Payments Bank Limited (PPBL), citing failure to comply with the regulatory conditions laid down under its payments bank licence. The Central Bank said the entity would no longer be permitted to carry out banking operations and announced that it will approach the High Court to initiate the process of winding up the bank. According to One 97 Communications Limited, the parent company of Paytm, the company does not have any exposure to PPBL or any material business arrangements with PPBL. “No services provided by the Company are in partnership with PPBL. Additionally, PPBL operates independently, with no board or management involvement from the Company. There is no direct financial impact on the Company since, as previously disclosed, the Company had already impaired its investment in PPBL as of March 31, 2024,” according to the company’s exchange filing. Paytm and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies such as Paytm QR, Paytm Soundbox, Paytm card machines, and Paytm Payment Gateway, Paytm Money, among others, it mentioned. --IANS na/
