After the RBI action, questions about Paytm Payments Bank and its working methods are raised. The Reserve Bank found irregularities in Paytm, after which its services were banned. According to reports, Paytm Payments Bank’s license can also be cancelled. According to media reports, the accounts of more than 1,000 customers of Paytm Payments Bank were linked to the same PAN.
RBI suspected irregularities, about which the bank was warned. Even after this, Paytm did not take appropriate steps to fix it. The biggest mistake was regarding KYC, which RBI found flaws in.
Violation Of KYC Rules
Thousands of Paytm customers had not submitted KYC documents, and the company did not do KYC for many of its customers. It was found that thousands of customers had the same PAN number. This step was taken after the Reserve Bank suspected that some fraud was going on in the company.
You can continue using the existing balances on your Paytm FASTag. We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/clsDLVUD1N
— Paytm (@Paytm) February 1, 2024
What Is KYC?
KYC stands for Know Your Customer. In this process, the user submits the necessary documents so that the bank has sufficient information about the user and can identify him. It is important to follow the KYC process.
Huge Loss To Paytm
RBI suspected money laundering from some accounts. After RBI’s action, there has been a huge fall in Paytm’s shares. The company’s shares fell 36% in just two days. Paytm has suffered a big loss. Its stock has fallen more than 70 per cent. Its market value has also declined by $2 billion.
Paytm Payments Bank’s operating license may also be cancelled. If this happens, Paytm will not be able to provide its services. Paytm has been issued warnings several times for not following the rules.
