#RBI to cancel #Paytm Payments Bank's license after Feb 29?

The Reserve Bank of India directed Paytm's payments bank subsidiary to cease accepting new deposits in its accounts or widely-used wallets starting from March.

The Reserve Bank of India might take action following its February 29 deadline, beyond which customers will be unable to add funds to their savings accounts or the widely-used digital payment wallet of Paytm Payments Bank, according to sources.

Violations involved the improper use of customer documentation regulations and failure to disclose significant transactions, as stated by undisclosed sources to protect the confidentiality of the information.

Hundreds of thousands of Paytm Payments Bank customers hadn’t submitted know-your-customer documentation, a single identity document was used to register thousands of customers in some cases, and transactions running into tens of millions of rupees — far beyond regulatory limits — were being done in minimum-KYC accounts, which raised money-laundering concerns, according to the people. #IndiaBan #Vijayshekharsharma