Let us discuss that
As per the report the accounts at the bank were created without proper identification.
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This may be potentially a money laundering case
The case is now transferred to ED for further investigation
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If any illegal activities found ED may ban the Paytm bank completely
RBI has certain mandates for all the Payment banks that operate in India
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RBI found that hundreds of thousands of accounts at Paytm Payment bank are not following its mandates
The payment bank has been barred by RBI from engaging in any further activities that involve accepting deposits or top-ups in any customer account, prepaid instruments, FASTags, wallets, etc till the report came.
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Paytm is denied the irregularity in bank,
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The bank has denied the money laundering allegations
However, it is found that multiple accounts at Paytm Payments Bank were linked to the same identification that transactions ran in to crores.
ED will share its report by 29th February 2024
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If any irregularity found, RBI will ban Paytm Payment bank.
It is not clear if Paytm App will work after that.
RBI is also scanning other fintech firms
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Fintechs that operate in the unsecured loan segment and act as intermediaries between customers and lenders are under the radar.
This action on Paytm Payment bank may not have much impact on custormers
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90% of Paytm's UPI users have accounts linked with other banks
This crisis is not like other banking crisis like yes bank crisis
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Customers can withdraw their amount and deposit in other banks or use the amount.
Though there is nothing to worry about your current deposits, it is advisable to stay away from the bank for till all is clear
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