PAYTM RBI VIOLATIONS
Amazon Pay India top up; GST summons for egaming firms
Amazon has pumped Rs 600 crore in its local fintech unit Amazon Pay India. This and more today’s ETtech Top 5.
Budget-day release for FAME-III; Indian VCs need to pivot
Measures to boost the sale of electric vehicles are likely to be announced in the upcoming budget. this and more on today’s ETtech Top 5.
Kotak Mahindra Bank is the latest student in RBI's classroom
The Reserve Bank of India's increased scrutiny on Kotak Mahindra Bank has resulted in a temporary halt on acquiring new customers through online and mobile banking channels and issuing fresh credit cards, causing a significant drop in the stock price of the private sector lender. However, the RBI has been taking incremental actions on financial institutions in recent years. Check the list.
Vijay Shekhar Sharma seeks ChatGPT advice on cooking oil. Social media users ask is it the reason behind PayTM's downfall
Paytm founder Vijay Shekhar Sharma sought advice from ChatGPT on the health effects of reheating cooking oil. He shared his findings on social media, warning about the dangers of reheating oil too many times. However, his post was met with criticism from some users, who questioned his focus.
RBI directs banks and finance companies to prioritise governance, adhere to rules
Speaking to the media after announcing the policy, the governor also said that financial stability is a joint responsibility of the regulator and the regulated entity. "We supervise all major entities. Wherever we see a problem, we first engage with the entity to see that corrective actions are taken. Where we see that the problems are huge or persistent only then we act," the Governor said.
Paytm moves PoS terminals to RBL Bank; CCI orders probe on Google
Paytm’s point of sale (PoS) terminals for processing card payments are being moved to RBL Bank. This and more in today’s ETtech Top 5.
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ET analysis: RBI shows the fist to build 'future proof' digital financial ecosystem
Recent penalties on financial intermediaries by the RBI under Governor Shaktikanta Das reflect the regulator's intolerance towards non-compliance. The actions highlight serious violations, including non-compliance with regulations and deviation from good governance. The RBI is focused on improving compliance and transparency in the financial sector.
Paytm’s forex woes: Understanding the role of fintechs in cross-border payments
The Directorate of Enforcement (ED) is probing Paytm regarding forex violations by some of its merchants. In its response, Paytm has said it is not authorised by the central bank to deal in forex, and hence there is no question of violation. Who is authorised to deal in forex in India? What is the role of fintechs in this business, and where do banks stand? ETtech explains.
No foreign remittances licence, no Fema violation: Paytm to ED
Paytm Payments Bank has denied Fema violation as it lacks licence for foreign remittances, said sources to ET. ED has written to RBI. The federal agency recently obtained the "additional" data requested from RBI regarding entities allegedly involved in Fema violations through Paytm Payments bank. However, upon reviewing the data provided by the RBI, the agency has not found any apparent Fema violations by Paytm Payments Bank, according to the sources.
RBI ups scrutiny of fintechs with more inspections
India's financial regulator, the Reserve Bank of India (RBI), is intensifying oversight of fintech firms after inspections revealed lapses in customer due diligence. The RBI has increased meetings with executives and invested in better technology to monitor regulatory compliance. This comes after the central bank ordered Paytm to shut down its banking unit for persistent non-compliance.
Paytm bank RBI crackdown may just be the start? Banks’ rush for clients set for reckoning
Paytm: Indian regulators are cracking down on potential fraud in the financial sector, starting with Paytm. The Reserve Bank of India is getting tougher on customer verification lapses and may take more severe action against Paytm bank, which had backing from Warren Buffett and SoftBank Group Corp.
Paytm loses out on Fastag; IT hiring slows amid increased scrutiny
The move is aimed at ensuring that millions of Paytm Fastag users do not face any hassle while using toll roads after the cut-off date, people aware of the matter told ET. The government is apprehensive of the inconvenience that will be caused to Paytm users, they said.
ED begins Paytm probe; Tata's Neu Uber partnership
Officials from Paytm Payments Bank were summoned by the Directorate of Enforcement (ED) for interrogation earlier this week, sources have revealed, as part of an investigation into alleged breaches of the Foreign Exchange Management Act (Fema) by entities using its services.
ED quizzes Paytm Payments Bank officials
Paytm Payments Bank executives provided information and documents sought by the agency. ED has asked them to furnish more details by next week, sources said. The executives were summoned as “part of the procedure” that needs to be followed once a Fema investigation is launched.
RBI says Paytm’s non-compliance forced action; Zomato’s Q3 report card
Without naming a specific entity, RBI Governor Shaktikanta Das said the regulatory action was driven by a “lack of compliance”.
Vijay Shekhar Sharma: Can the whiz-kid from Aligarh rock again?
Vijay Shekhar Sharma, the founder and CEO of Paytm, has built the company from a startup to India's biggest mobile payments company. However, a recent regulatory move by RBI banning Paytm's payments bank for violations has put the company's future at risk. Sharma's focus on growth and big numbers may have led to regulatory compliance issues, but his determination and resilience may help Paytm survive this setback.
Persistent non-compliance by Paytm, action proportionate with regulations, says RBI
The Reserve Bank of India (RBI) defended its action against Paytm Payments Bank, citing "persistent non-compliance" and violations of regulations, including those related to know-your-customer (KYC) documents. The central bank emphasized the importance of compliance for systemic stability and depositors' protection. RBI officials clarified that regulatory engagement preceded the action, and the forthcoming FAQ will address queries on the Paytm issue.
Juspay, others secure payment aggregator nod; Paytm shares rebound
Zoho is the first enterprise Saas player to get the payment aggregator nod from the RBI, joining the likes of Razorpay, Cashfree, Zomato and others.
RBI, ED likely to turn up heat on mobile payment users violating Fema rules
In its communication sent last week of November, RBI had shared information with ED of the entities which may have committed Fema and other violations. A top government official said that the information shared by RBI, seeking a Fema probe, pertained to the financial years from 2017-20.
Paytm Crisis: When Raghuram Rajan bet on the payments bank plan to test innovation boundaries
Paytm is facing a regulatory curb by Mint Street. Former RBI Governor Raghuram Rajan had warned about Paytm's likely discomfort with regulators. Paytm is facing complaints of violating banking compliance norms, conflict of interest, lax processes allowing fraud, and licensing agreement breaches. RBI's technical audit reportedly found accounting and supervisory problems due to money and data traffic flows between Paytm Payments Bank and Paytm's other units
ED tapped RBI for more info on FX violations by Paytm Bank users
ED sought additional information from the Reserve Bank of India (RBI) on alleged violation of the Foreign Exchange Management Act (Fema) by individuals and companies using Paytm Payments Bank. RBI had informed ED of possible breaches in November 2023. ED wrote back to RBI seeking information on the entities that had violated Fema.
Paytm denies reports of being investigated or violation of forex rules by co or Payments Bank
Paytm parent company One97 Communications Ltd has denied reports of the company or its arm Paytm Payments Bank being investigated for violating foreign exchange rules. The company denied the allegations, stating that the reports were misleading and baseless. Paytm has also denied reports of its founder Vijay Shekhar Sharma or others being investigated by the Enforcement Directorate.
Paytm crisis: Focus on moving business to other banks, leadership tells staff
Paytm top leadership addressed employee concerns about the future course of action during townhall meetings held at Paytm Payments Bank, One 97 Communications. While the detailed reasons for the RBI's decision were not disclosed, the One97 Communications team has been primarily tasked with creating backend systems, which can be used to transfer the payment settlement systems from Paytm Payments Bank to other banking partners.
ED, GST authority flagged several violations by Paytm earlier
The ED and DGGI have investigated Paytm for alleged money laundering and illegal betting. The agencies have raised concerns about Indian payment gateways being used for trade-based money laundering, illegal betting, and diversion of funds to crypto wallets. Paytm has faced scrutiny for KYC-related lapses and freezing suspicious accounts.
Paytm crisis: Read our top stories on RBI action and its implications on fintech ecosystem
The Reserve Bank of India (RBI) directed Paytm Payments Bank to stop banking services due to violations, including money laundering and KYC breaches. Paytm is in talks with other banks for migrating payments and settlements. Paytm founder assures users that the app will continue operating. The RBI's actions have wider implications for the fintech industry. Brokerage firms are skeptical about Paytm's future due to regulatory concerns.
Not being investigated by ED, no charges of money laundering: Paytm to stock exchanges
Paytm parent One 97 Communications said in a stock exchange filing late Sunday that it denies any investigation by the Enforcement Directorate on the parent entity, it associates and/or its founder & CEO for anti-money laundering activities.
RBI may cancel permit of Paytm Payments Bank
According to a Bloomberg report, Reserve Bank of India could act after a February 29 deadline it has set, after which Paytm Payments Bank will bar customers from replenishing their saving accounts or the popular digital payment wallet
After series of ‘violations’, Paytm may lose Payments Bank licence
The RBI alerted the ED about possible money laundering and KYC violations at Paytm. The home ministry alerted the PM's office about security concerns related to fund flows with links to China. RBI uncovered data breaches and found violations of the Prevention of Money Laundering Act. Paytm officials were told to mend their ways after a meeting with the regulator. RBI took action to warn the company, and harsher action is possible if there is no change.
Breaches piling up for seven years at Paytm Payments Bank
Sources told ET that issues at Paytm Payments Bank were brewing for the past seven years and included complaints such as Violation of banking compliance norms on money laundering, conflict of interest, maintaining an arm’s length from the parent, lax processes allowing fraud, licensing agreement breaches.
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