When the Reserve Bank of India (RBI) announced partial suspension of Paytm Payments Bank operations, it evoked criticism that the regulator was high-handed in dealing with a new-age fintech firm. Despite clear indications of non-compliance, the payments bank founded by a first-generation entrepreneur still enjoys sympathy. The Paytm Payments Bank saga is a sordid tale of continued disregard for compliances and regulatory norms. Due to the very nature of its business, non-compliance of regulatory standards is a cardinal sin for a banking company. Time and again, RBI has taken some action or other against Paytm for its failure to keep up with regulatory rigours expected from a bank.

Source: Indian Express February 19, 2024 00:50 UTC