“Traders’ Body Recommends Users Switch Payment Apps as Paytm Faces Fresh Crisis with RBI Crackdown”
In the wake of the recent crackdown by the Reserve Bank of India (RBI) on Paytm Payments Bank over regulatory violations, the Confederation of All India Traders (CAIT) has issued a cautionary advisory to Paytm users. The traders’ body is urging users to consider alternative payment apps for their financial transactions.
In the wake of the recent crackdown by the Reserve Bank of India (RBI) on Paytm Payments Bank over regulatory violations, the Confederation of All India Traders (CAIT) has issued a cautionary advisory to Paytm users. The traders’ body is urging users to consider alternative payment apps for their financial transactions.
CAIT highlighted concerns over the risks associated with Paytm Payments Bank, citing RBI’s warnings regarding Know Your Customer (KYC) violations. The statement from CAIT read, “The Reserve Bank of India has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions.”
Praveen Khandelwal, the Secretary General of CAIT, expressed the urgency of the advisory, especially for small traders, vendors, hawkers, and women who heavily rely on Paytm for their business transactions. He emphasized that the recent restrictions imposed by the RBI have raised questions about the security and continuity of financial services provided by the platform.
The advisory comes in the aftermath of RBI’s notice to Paytm Payments Bank, where concerns about money laundering and failure to comply with KYC norms were raised. The central bank has directed Paytm Payments Bank to cease most of its business operations, including accepting further deposits, conducting credit transactions, and topping up customer accounts, prepaid instruments, wallets, and cards for road toll payments after February 29.
While Paytm founder Vijay Shekhar Sharma reassured users that the RBI’s notice against Paytm Payments Bank would not impact the Paytm app, CAIT’s advisory reflects growing apprehension among users. Sharma had previously stated that Paytm would continue to function normally beyond the February 29 deadline set by the RBI. However, there is speculation that the central bank may permanently suspend the operations of Paytm Payments Bank.
CAIT’s advisory underscores the potential financial disruption faced by users, prompting them to consider other payment platforms to safeguard their funds. As the deadline approaches, users are urged to make informed decisions promptly to mitigate any adverse effects on their financial operations. The situation remains fluid, and Paytm users are closely monitoring developments as they navigate the evolving regulatory landscape.
Sources By Agencies
About The Author
