Confederation of All India Traders Supports RBI’s Action Against Paytm Payments Bank

The Confederation of All India Traders (CAIT) praised the Reserve Bank of India’s (RBI) decision to revoke the licence of Paytm Payments Bank Limited (PPBL). CAIT emphasized the importance of this regulatory move in protecting the savings of numerous Indians who had trusted the institution with their money.
CAIT Secretary and BJP MP Praveen Khandelwal highlighted the RBI’s action as a response to persistent regulatory non-compliance, governance lapses, and a lack of adherence to supervisory directives. The RBI had previously imposed significant restrictions on Paytm Payments Bank in 2024 due to similar issues.
Khandelwal appreciated the RBI’s assurance to depositors that their funds are secure and will be returned following due process. This assurance is particularly crucial for small traders, shopkeepers, and others who heavily rely on Paytm for daily transactions.
CAIT raised concerns about potential financial inconveniences for micro and small users following the regulatory action against Paytm Payments Bank. The organization urged authorities to ensure a smooth transition to prevent unnecessary hardships for these users.
CAIT National President, BC Bhartia, called for a thorough investigation into the handling and storage of financial and consumer data amassed by Paytm over the years. The RBI’s decision to cancel PPBL’s licence was based on its failure to meet regulatory requirements, leading to the cessation of its banking operations.
According to One 97 Communications Limited, Paytm’s parent company, there is no substantial business connection with PPBL. The company clarified that its services, including the Paytm app and other subsidiaries, will continue unaffected by the PPBL’s licence cancellation.