Paytm Share Price: RBI had also revealed data breach along with information flowing between the payment bank and One 97 Communications. TOI report revealed that transactions worth crores were being done in many accounts without KYC.
Paytm Payments Bank Violations: The Reserve Bank recently banned Paytm Payments Bank from creating new customers. After this, Paytm founder Vijay Shekhar Sharma assured the customers that Paytm service will continue even after February 29. But now Bloomberg has claimed quoting sources that RBI is thinking of canceling the license of the bank. Sources related to this entire matter claimed that RBI had recently informed ED about the case related to money laundering in Paytm. Information related to this has been given in the news published in Economic Times. The bank is also accused of not following KYC rules.
Data breach was also disclosed
According to ET, the Home Ministry had also alerted the PMO about security concerns related to funding flow through a company linked to China. A person having information related to the case said, information has been given to ED regarding anti-money laundering provisions and KYC rules. RBI had also revealed data breach along with information flowing between the payment bank and One 97 Communications. TOI report revealed that transactions worth crores were being done in many accounts without KYC. Lakhs of prepaid cards were issued without KYC, due to which huge money was transferred.
The bank will not be able to accept new deposits.
Now the order issued by RBI on January 31 has ordered to stop the banking service of Paytm Payment Bank customers from February 29. According to this order, Paytm Payment Bank will not be able to accept new deposits. Taking action against Paytm Payment Bank Limited, the Central Bank has ordered not to allow deposits or credit transactions or topups in wallet, Fastag, NCMC card from any customer after February 29. A person associated with this whole matter said that not following the rules is serious.
One PAN for KYC of 1000 customers.
Experts say that in such a case, even appointing an administrator will not solve the problem. If there is delay in this matter, it may have serious consequences. TOI report claimed that the same PAN card was used to do KYC of 1000 customers in Paytm Payments Bank. This is not the first time that RBI has taken this action. Even before this, RBI has taken action against Paytm Payment Bank. Let us know when action was taken against the bank?
When and when was the action taken
- In November 2022, a fine was imposed by RBI on Paytm Payments Bank for violating some rules. At that time, the bank was involved in misuse of data and inadequate verification of customers.
- Even in March 2023, RBI had banned Paytm Payments Bank from adding new customers.
- In October 2023, a fine of Rs 5.09 crore was imposed on the bank for violation of KYC rules.
- In January 2024, RBI stopped Paytm Payments Bank from depositing money, transferring funds and giving loans.
