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The continued disaster surrounding Paytm has drawn sharp consideration from the Minister for State for Electronics and Data Expertise (MeitY), Rajeev Chandrasekhar, who emphasised that regulatory oversight applies to all, no matter their standing as monetary know-how (FinTech) entities.
Chandrasekhar’s remarks, made on Saturday, come within the wake of stringent actions taken by the Reserve Financial institution of India (RBI) towards Paytm Funds Financial institution, citing vital breaches of regulatory requirements and compliance protocols.
Talking on the launch of Digital India Future Labs in New Delhi, Chandrasekhar asserted, “A sectoral regulator has absolute authority to control each entity throughout the sector. The RBI has exercised this authority, and it falls properly inside their purview.” He underlined that working as a FinTech or tech firm doesn’t exempt any entity from regulatory scrutiny.
The RBI’s crackdown on Paytm Funds Financial institution has resulted in extreme limitations, with the platform barred from accepting contemporary deposits and conducting credit score transactions past February 29, 2024. Paytm, nevertheless, is actively engaged on its enchantment to increase this deadline.
Investigations by the RBI have revealed grave irregularities within the Know Your Buyer (KYC) processes of quite a few Paytm Funds Financial institution clients, elevating issues of potential information misuse and cash laundering. The absence of correct KYC compliance for a considerable variety of customers, estimated to be within the tons of of 1000’s, has led to vital breaches of RBI rules. Hypothesis is now rife that Paytm Funds Financial institution might face everlasting suspension following the February 29 deadline.
Regardless of the looming deadline and regulatory scrutiny, Paytm founder Vijay Shekhar Sharma has reassured customers that the Paytm app will proceed to function with out disruption. In a publish on X, Sharma affirmed, “To each Paytmer, Your favorite app is working, will hold working past 29 February as standard.” He expressed gratitude for the unwavering assist and pledged the corporate’s dedication to serving the nation in full compliance with rules.
Paytm Funds Financial institution, which operates underneath restricted banking tips, holds the bulk stake owned by billionaire Vijay Shekhar Sharma, with Paytm mother or father firm One 97 Communications Ltd. retaining the rest.
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