A small grocery store in India’s financial capital Mumbai has begun asking customers to pay cash as a popular digital payments service, which it used until now, is facing uncertainty over its survival.
India’s central bank has asked Paytm – the company that revolutionised digital payments in the country – to stop all services offered by its banking division, also known as the wallet service, due to “persistent non-compliance” of its rules. The division supports Swift payments through the Paytm app, which has more than 330 million users.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
Meanwhile, Paytm has denied the allegations. In a statement the company said that “the Paytm app remains fully operational, and our services are unaffected”.
The app can continue to facilitate quick payments between non-Paytm bank accounts as an intermediary but it can’t accept direct deposits.
This would severely impact the company’s wallet business. Paytm wallet is almost like a bank account in which people can receive deposits, keep money and make payments – all done by scanning a QR code or using mobile phone numbers as their identity.
People can also transfer money from their wallets to their accounts in other banks and vice-versa.
Not surprisingly, the regulatory crackdown has come as a blow to thousands of small business owners who relied on the app for making quick and easy transactions.
A small grocery store in India’s financial capital Mumbai has begun asking customers to pay cash as a popular digital payments service, which it used until now, is facing uncertainty over its survival.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
India’s central bank has asked Paytm – the company that revolutionised digital payments in the country – to stop all services offered by its banking division, also known as the wallet service, due to “persistent non-compliance” of its rules. The division supports Swift payments through the Paytm app, which has more than 330 million users.
Meanwhile, Paytm has denied the allegations. In a statement the company said that “the Paytm app remains fully operational, and our services are unaffected”.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
Meanwhile, Paytm has denied the allegations. In a statement the company said that “the Paytm app remains fully operational, and our services are unaffected”.
The app can continue to facilitate quick payments between non-Paytm bank accounts as an intermediary but it can’t accept direct deposits.
This would severely impact the company’s wallet business. Paytm wallet is almost like a bank account in which people can receive deposits, keep money and make payments – all done by scanning a QR code or using mobile phone numbers as their identity.
People can also transfer money from their wallets to their accounts in other banks and vice-versa.
Not surprisingly, the regulatory crackdown has come as a blow to thousands of small business owners who relied on the app for making quick and easy transactions.
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