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Tag: paytm

  • Paytm UPI Now Works in UAE, France, and Singapore

    Owned by One97 Communications Limited (OCL), Paytm, the leader in digital payments in India, has extended its offerings to include international Unified Payments Interface (UPI) transactions.

    Paytm users may now use the UPI system to make easy cashless payments in the UAE, Singapore, France, Mauritius, Bhutan, and Nepal, facilitating safe and transparent transactions with foreign retailers who use UPI.

    How it Operates Internationally?

    Travellers can use the Paytm app to instantly activate the international UPI service. A one-time activation connected to the user’s bank account is necessary for the setup. The app will immediately direct users to enable the service when they scan a UPI-enabled QR code overseas. 

    Depending on the length of their travel, customers can designate a usage term, from one day to ninety days, to maintain control and security. In order to prevent unintentional payments to overseas merchants, the feature also permits deactivation upon return to India. Before completing transactions, users are also fully informed about bank conversion costs and exchange rates. 

    How it can Benefit the Travellers?

    By enabling cashless payments for dining or shopping, the international UPI service streamlines spending at well-known locations across the globe. As leaders in mobile payments, Paytm is excited to provide its services to Indian tourists, particularly as the holiday season draws near, a Paytm representative stated. The company’s dedication to empowering users anywhere in the world is demonstrated by this invention. 

    Paytm’s this Year’s Performance

    After the decline brought on by the Reserve Bank of India‘s (RBI) action against Paytm Payments Bank, Paytm is confident that it is back on track. As income increased sequentially, the corporation is credited with reviving the revenue trend. Due to tax ramifications associated with the one-time gain that won’t be evident for several months, it is now unclear whether Paytm’s performance in Q2 has improved over Q1. During the Q2 FY25 earnings call, however, CFO Madhur Deora and founder and CEO Vijay Shekhar Sharma were eager to discuss how Paytm can return to actual profitability.

    The default loan guarantee mechanism in the merchant lending industry took up a large portion of the call. In addition, Sharma asserted that the AI-led efficiency and productivity push and the cross-selling approach received some attention and should lessen Paytm’s need for hiring. As reported by media agencies, Paytm would reimburse its bank or NBFC lending partners for any losses resulting from defaults in its loan portfolio up to a predetermined proportion of the total amount disbursed under a default loan guarantee (DLG), also known as a first loss default guarantee (FLDG).

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  • The Zomato District App is now Available for iPhone and Android Users

    The ‘District’ app is the most recent venture of Gurgaon-based food delivery giant Zomato. The goal of this new platform is to serve Zomato’s expanding “going-out” business, which includes reservations for restaurants, events, and cinema tickets. After the rapid commerce platform Blinkit and the food delivery service Zomato, this is the company’s third consumer-facing venture.

    Zomato made a calculated decision to enter the going-out market in order to increase its revenue sources and take advantage of the growing entertainment sector. In August 2023, the company paid a hefty INR 2,048 crore to acquire Paytm’s events and ticketing division, strengthening its dominance in this market.

    Attracting Features

    The District app provides a wide range of services, including the ability for users to reserve movie tickets from multiple chains, including Cinepolis and PVR-Inox. Bookings for plays, concerts, and other live events are made easier by the app. Zomato‘s vast restaurant network allows users to book tables at eateries.

    Locking Horns With BookMyShow

    Competition from well-established firms like BookMyShow (supported by Reliance), which presently commands a sizable market share in movie ticketing, is heightened by Zomato’s foray into the going-out sector. Nonetheless, Zomato might have a competitive advantage due to its well-known brand, large user base, and substantial financial resources.

    Zomato intends to gradually move services from its main app, the Insider app, and Paytm’s platform under the District app, which would house its going-out businesses. This calculated action will improve emphasis on the main offerings and streamline the user experience.

    Zomato is in a strong position to benefit from the rising demand for entertainment and leisure activities as it keeps extending its presence in the going-out market.

    Zomato and Paytm Deal

    In an exchange filing on August 28, food delivery giant Zomato said that it has successfully acquired Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL), Paytm’s event ticketing subsidiaries. The Insider and TicketNew platforms are run by WEPL and OTPL, respectively. On June 16, media outlets first revealed that Paytm was in negotiations to sell Paytm Insider to Zomato, owned by Deepinder Goyal, who wants to grow the “going-out” industry.

    Paytm, a company based in Noida, also attested in a different filing that the events and movie tickets business was successfully transferred to Zomato on August 27. To ensure a seamless and continuous experience for users and merchant partners, the movie and event tickets will be accessible on the Paytm app, as well as on the TicketNew and Insider platforms, for a maximum of 12 months during the transition time. Approximately 280 current workers of the entertainment ticketing company will transfer to Zomato as part of the agreement.

     According to Paytm, the company’s goal is to concentrate on the delivery of financial services and payments. Following aggressive investments in the popular rapid commerce sector, the deal represents a significant step towards Zomato expanding its operations beyond food delivery.

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  • Paytm Makes it Simple to Track Expenses by Launching the UPI Statement Download Option

    Paytm, a major player in digital payments, has introduced a new feature that lets users download UPI statements straight from the app. By providing transaction data in an easily readable, downloadable PDF format, this update seeks to simplify the process of keeping track of spending and being ready to file taxes.

    The “Balance & History” area of the app is where Paytm users may access the new UPI statement download option. In order to generate comprehensive statements that include transaction amounts, recipient information, bank accounts used, and timestamps, users can choose particular date ranges or even full fiscal years. These documents, which are organised, help users manage their financial records, budget, and keep tabs on their expenditures.

    It is anticipated that both people and tax professionals will find the UPI statement download service very helpful. Users can keep thorough records with this function, which makes tax filing and spending reviews easier.

    Service Will Bring in More Transparency and Help in Managing Finances

    According to a Paytm spokesperson, the service is made to satisfy the demands of consumers who value openness and simplicity in handling their money. The company’s dedication to developing mobile payments motivates it to provide services that make financial management easier and give its customers convenience. The company provides quick access to transaction history through the UPI statement download, enabling consumers to make wise financial decisions.

    Along with this capability, Paytm keeps improving its services by adding features like UPI Lite, which enables uncluttered bank statements for minor transactions under INR 2,000.

     The platform’s reputation as a complete digital payments solution is further supported by its ability to link RuPay Credit Cards with UPI, auto-pay for smooth bill payments, and self-account transfers.

    Paytm Receives NPCI Approval to Onboard New UPI Customers

    Last month,  One97 Communications (OCL), the firm that runs the Paytm brand, announced on 22 October 2024 that it has been given permission by the National Payments Corporation of India (NPCI) to onboard new UPI users.

    In a letter to Vijay Shekhar Sharma, the founder and CEO of the Noida-based company, NPCI chief Dilip Asbe gave the company permission to start onboarding new users. The NPCI’s procedural rules and agreements with Payment Service Provider (PSP) banks govern the permissions.

    According to the filing, “Paytm would like to notify the exchange that the National Payments Corporation of India (NPCI) has authorised the company to onboard new UPI users in accordance with all NPCI procedural standards and circulars, as stated in a letter dated October 22, 2024.” The corporation may see a rise in UPI transaction volumes as a result of the decision to onboard new users. 

    The fintech major’s associate entity, Paytm Payments Bank, was subjected to severe restrictions by the banking regulator in January, which resulted in a substantial decline in its UPI market share. The NPCI’s approval will fume fresh energy into the business operations of Paytm. 

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  • In October, UPI Registered a 10% Month Over Month Growth

    Between September and October of 2024, the volume and value of transactions using the Unified Payments Interface (UPI) increased fairly. According to figures released by the National Payments Corporation of India (NPCI), the digital payment network logged 16.58 billion transactions in October, a 10% rise from 15.04 billion in September.

    From INR 20.64 lakh crore in September to INR 23.50 lakh crore in October, the transaction value increased by 14%. A 37% increase in transaction value and a 45% increase in transaction quantity year over year drove this gain.

    Average Daily Transaction Grows to 535 Million in October

    Additionally, from September to October, the average daily transaction volume climbed from 501 million to 535 million, with the daily transaction amount reaching INR 75,801 crore, a significant rise from INR 68,800 crore the month before.

    PhonePe continued to hold the top spot in the UPI market in India in September, accounting for 48% of all transactions. Second place went to Google Pay with 37.4%, and third place went to Paytm with 7%. The October market share figures are still pending.

    New Adjustments Made by the NPCI

    The parent firm of Paytm, One97 Communications Limited, was recently given permission by the National Payments Corporation of India (NPCI) to onboard new users onto its UPI network. It is anticipated that the Noida-based company will benefit from the new authorisation by increasing its user base and market share in the cutthroat UPI industry.

    Significant adjustments to UPI transaction restrictions have been made by NPCI in recent weeks. The restrictions for UPI Lite Wallet and UPI 123Pay have also been lifted, and the maximum amount for some UPI payment types has been raised to Rs INR lakh. With these changes, the Indian government hopes to support its ambitious aim of 1 billion transactions per day by 2026–2027 by promoting a higher use of digital transactions.

    How UPI has Become a Game-Changer in India’s Financial Market?

    The Unified Payments Interface is a ground-breaking technology that has completely changed the financial scene in India. It has greatly simplified digital transactions and increased the accessibility and convenience of money transfers.

     Additionally, UPI is essential for strengthening the Indian economy. This payment interface is equipped with a cutting-edge payment system, and it examines its features, advantages, and noteworthy influence on India’s economic development. The National Payments Corporation of India (NPCI) created the real-time payment system known as UPI. It makes it possible to combine several bank accounts into one mobile app. Fund transfers are made quick and simple by combining a number of banking functions.

    With more than 100 banks providing UPI-based services, UPI has gained widespread acceptance in India and enables instantaneous, round-the-clock interbank transactions.

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  • Former Ola CBO Sidharth Shakdher Becomes CMO and Business Head at Paytm

    According to reports, Sidharth Shakdher has been named the new Chief Marketing Officer (CMO) and Business Head of Paytm, a fintech company.

    Within nine months of joining the company run by Bhavish Aggarwal, Shakdher left Ola. Among other accomplishments, he was instrumental in the establishment of the consumer loans section, the Ola Loyalty programme, and the ONDC food delivery service.

    Shakdher’s New Role

    Shakdher will collaborate closely with Vijay Shekhar Sharma, the CEO of Paytm, in his new position to grow the company and increase profitability. Shakdher has over 25 years of experience and has held important executive positions at Disney+Hotstar, Samsung, Canon, HP, Xerox, and Amazon, among other large corporations.

    He served as Disney+ Hotstar’s EVP and CMO prior to joining Ola, where he helped with the platform’s global expansion and direct-to-consumer approach.

    Before that, Shakdher oversaw Amazon’s US category marketing and third-party marketplace. In addition to his many responsibilities, he spearheaded innovation for Reckitt’s main brand, Dettol, in North America. He launched and successfully established Dettol in the US personal care market.

    Shakdher oversaw marketing, category operations, growth, and revenue in both India and foreign markets in his capacity as CBO at Ola. With international teams directly answering to him, he also led new business endeavours in e-commerce, financial services, and AI cloud services.

    Paytm’s Current Financial Report Card

    The parent company of the digital payments platform Paytm, One 97 Communications Ltd., announced a notable improvement in its financial results for the second quarter that concluded in September 2024. In sharp contrast to the INR 290 crore loss reported a year earlier, the company reported a profit of INR 930 crore during the period.

    The company’s one-time gain of INR 1,345.4 crore from the sale of its event and movie ticketing services to Zomato Limited was the main driver of its profitability. With a loss of INR 495 crore, Paytm’s core business operations remained negative, excluding this extraordinary item. The company’s revenue from operations decreased by 34% year-on-year to INR 1,659 crore, a modest increase from the INR 1,501 crore reported in the previous quarter.

    Paytm Receives NPCI Approval to Onboard New UPI Customers

    Nearly nine months after the Reserve Bank of India (RBI) imposed a ban on the addition of new customers, One97 Communications (OCL), the firm that runs the Paytm brand, announced on 22 October 2024 that it has been given permission by the National Payments Corporation of India (NPCI) to onboard new UPI users. In a letter to Vijay Shekhar Sharma, the founder and CEO of the Noida-based company, NPCI chief Dilip Asbe gave the company permission to start onboarding new users. The NPCI’s procedural rules and agreements with Payment Service Provider (PSP) banks govern the permissions.

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  • For $244 Million, Zomato Purchased Out Paytm’s Entertainment Ticketing Division

    Zomato, a platform for foodtech and rapid commerce, is going to buy out Paytm’s movie and ticketing division. The deal has been in the works between the two businesses for three months now. Following Blinkit in June 2022, this is the first significant acquisition for the Gurugram-based startup.

    An announcement was made to the Bombay Stock Exchange (BSE) stating that Zomato has agreed to purchase Paytm’s entertainment ticketing business for INR 2,048 crore (about $244 million) in cash.

    Details of the Deal

    Zomato will receive full ownership of Orbgen Technologies (TicketNew) and Wasteland Entertainment (Insider), two subsidiaries of Paytm’s parent company One97 Communications, according to the terms of the agreement.

    Along with the two subsidiaries, 280 current employees from TicketNew and Insider will also be a part of the agreement. Paytm, which is headed by Vijay Shekhar Sharma, purchased Insider in May 2017 and TicketNew in 2018 for a total of $40 million.

    In FY24, the company reportedly made INR 297 crore in sales and INR 29 crore in adjusted EBITDA.

    During the transition time of up to 12 months, the entertainment ticketing business—which includes movie, sports, and live event ticketing—will continue to function on the Paytm app. Assuming all agreements are met, the transaction is anticipated to finalise this quarter.

    Why Zomato So Keen About This Acquisition?

    As per market experts, the last quarterly results showed a fall in gross order value, which is bad news for stock market investors because it indicates that the Zomato’s primary food sector is slowing down, even though the reduction was small. Although some may see the decline as a temporary setback, others worry that the meal delivery sector is reaching its peak as it expands into more and more locations.

    Therefore, many analysts and broking companies expect Blinkit, Zomato’s quick-commerce branch, to surpass Zomato’s primary meal delivery operation, and industry observers’ attention has recently shifted to Blinkit.

    They should be able to satisfy investors’ appetite for growth with Zomato’s main food company making profits and Blinkit offering growth, right? Yeah, but that’s only for today.

    It is unclear if Blinkit will be able to sustain Zomato’s growth in the future, even though it is currently driving it. This is because it is unclear if quick-commerce will gain traction in tier-2 and tier-3 cities after they have penetrating metro cities to their full potential.

    So, for Zomato to continue its growth trajectory in the future, it needs a fourth engine, in addition to its online food ordering, Hyperpure by Zomato, and Blinkit industries. One possible candidate for the fourth engine is Zomato’s “Going-out” vertical, which includes eating and live events. This makes this deal a perfect combination for Zomato, considering its future growth.

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  • The Implementation of a 30% UPI Cap Is Highly Doubtful

    With just over four months to go until the deadline, industry insiders have expressed doubts about the proposed 30% market share cap in the Unified Payments Interface (UPI) category, according to multiple media sources. Multiple newcomers to UPI have been informed, informally, that the limit is not going to be implemented. As a result, they have begun to reassess their growth and investment strategies, according to those briefed on the situation.

    According to earlier media reports, new players in the UPI industry are holding off on making large expenditures until they have a better understanding of the market share rule. UPI payments are dominated by PhonePe and Google Pay.

    However, the National Payments Corporation of India (NPCI), which oversees the UPI railway, has not received any official word from the government regarding its stance.

    Customers’ Choice

    Reportedly, the regulator is of the opinion that new entrants have not been able to reduce the dominance of the top two UPI services, therefore it is left with few choices regarding the implementation of the December 31st deadline.

    In response to enquiries, neither NPCI nor the ministry of electronics and IT provided any information. Implementing this law (market cap) will require significant planning, according to several experts. It cannot be done in a day due to the disruptive nature of the process.

    The Growth Trajectory

    Both the government and NPCI are deeply committed to the expansion of UPI, which reached 14 billion monthly transactions in May. If people keep using the same two or three platforms, what options do we have? So many new entrants are able to set up shop, but they haven’t made a dent just yet.

    In July, out of the 14.4 billion UPI transactions, more than 85% were processed through Walmart’s PhonePe and Google Pay. Google Wallet had 5.3 billion transactions, whereas PhonePe had 6.9 billion. With 1.1 billion UPI transactions, Paytm (One 97 Communications) came in third, and Cred (142 million payments) came in fourth.

    The Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank in February, making arguments about the market share ceiling more prominent. Paytm is the third largest UPI operator. On February 5, a prominent media outlet said that Paytm’s problems will cause users and businesses to switch to the two most popular applications.

    Why the Cap Cannot Be Implemented?

    To prevent the UPI ecosystem from becoming overly dependent on only one or two platforms, NPCI first proposed a market share cap. In December 2022, NPCI delayed implementation for two years following multiple rounds of negotiations and requests from key corporations operating such apps.

    Some industry executives and specialists in the field have voiced concerns that imposing a market share cap might cause systemic disruption and be technically challenging to achieve.

    Conversely, NPCI has been facilitating the development of UPI solutions by numerous consumer internet platforms with huge user bases, enabling them to become third-party application providers.

    Flipkart, the e-commerce platform that was once PhonePe’s parent company, Groww, Slice, and the Tata Neu superapp are all part of this group. Another company that has introduced its UPI offering through the plug-in channel is Swiggy, a food and grocery delivery firm that has partnered with banks. Similarly, Ola Consumer is in the process of planning a same system.

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  • Unpaid Stamp Duty Cost Paytm’s Parent Firm INR 47.12 Lakh

    One97 Communications, the parent company of Paytm, has been ordered by the Office of Collector of Stamps in New Delhi to pay a penalty of INR 47.12 lakh for failing to pay stamp duty on the allotment of equity shares in recent years.

    As stated in a filing with the exchange, the penalty is a consequence of the company’s failure to pay stamp duty in the amount of INR 1,43,16,535 as a result of the allocation of 10,26,386 equity shares, each of which is worth INR 10.

    Despite the fact that there were delays of a few days in the submission of some applications, the company submitted applications for the payment of stamp duty at the appropriate time with the Office of Collector of Stamps in New Delhi. In the order that they were submitted, the applications in question have been processed by the Office of the Collector of Stamps.

    According to the filing, the company stated, “Firm has taken all of the necessary steps to be more diligent in doing our best to avoid similar instances in the future.”

    What Is Stamp Duty?

    The government levies a charge known as stamp duty on legal papers, particularly those that pertain to the transfer of property, the issue of shares, and other types of financial transactions.

    It is necessary for the legal validity and enforcement of these documents, which are payable when particular transactions take place, such as the transfer of property ownership or the formation of legal agreements.

    Paytm Sailing through Troubled Waters

    The Financial Intelligence Unit-India (FIU-IND) levied a penalty of INR 5.49 crore against Paytm Payments Bank Ltd. for violating the Prevention of Money Laundering Act earlier in the month of March.

    The bank was allegedly involved in supporting illicit activities, such as online gambling, through its accounts, which led to the imposition of the penalty. According to the findings of the Financial Intelligence Unit of India (FIU-IND), the bank has violated the rules regarding anti-money laundering, combatting financing of terrorism, and KYC (Know Your Client).

    In its response, Paytm Payments Bank stated that the problems were related to a business sector that had been discontinued and that it has also enhanced its monitoring and reporting mechanisms since previous statements.

    This is a warning lesson for all businesses, as Paytm went from being a pioneering firm to having to face regulatory roadblocks. Because of this, the complex equilibrium that exists between rapid growth and tight compliance is brought to light. All companies would be well to take note of Paytm’s experiences and reevaluate their compliance practices in light of these difficulties.

    Innovation is the engine that drives expansion, but compliance with laws and regulations is what assures long-term viability. By ensuring that their pursuit of innovation does not eclipse the need for compliance, businesses have a responsibility to work towards striking a balance between these factors.

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  • PhonePe and Google Pay Are Losing Ground to Newcomers in the Online Payment Space

    As smaller companies gained headway in India’s unified payments interface in June, the share of total transactions processed by Walmart Inc.-owned PhonePe and Alphabet Inc.’s Google Pay declined slightly. From 48.67% in May to 48.37% now, PhonePe’s percentage of all UPI transactions has decreased.

    According to data issued by the National Payments Corporation of India, Google Pay’s fraction decreased from 37.18% last month to 36.76%. The total number of transactions processed by the UPI network in June was 13.88 billion, down 1% from the previous month.

    New Entrants Giving a Tough Run to Established Players

    Many new companies have recently entered the UPI payments market. More than 80% of the market is controlled by PhonePe and Google Pay, but new competitors are threatening their supremacy.

    For example, in June, there was a 17% increase to 75 million UPI transactions on the apps of Axis Bank Ltd. and a 20% increase to 35.7 million transactions on the Navi app. Another UPI payment option is super.money, which was introduced by Flipkart, a subsidiary business of PhonePe and an eCommerce giant in India. The JioFinance app, developed by Mukesh Ambani’s Jio Financial Services, also joined the competition, allowing users to access the growing financial scene in India.

    Paytm Comes to a Standstill

    Paytm, which was experiencing a regulatory setback, managed to maintain its 8% market share from the previous month, which indicates that the market loss that has been occurring since the beginning of the year has come to a standstill.

    After the Reserve Bank of India issued an order earlier this year to come close to shutting down Paytm’s banking unit, the company’s net loss for the first quarter of the fiscal year, which ended in June, more than doubled to INR 8.39 billion, which is equivalent to $100 million.

    Cred Becomes the Fourth-Largest Player in the Game

    Based on the information provided by the NPCI, CRED has established itself as the fourth largest player in the processing of UPI payments. It is interesting to note that it has exceeded Amazon Pay, WhatsApp, and BHIM, and it has handled more than one-third of the total value of transactions that Paytm has processed in the past month.

    Praveena Rai, the chief operating officer (COO) of the National Payments Corporation of India (NPCI), has stated that the Unified Payments Interface (UPI) is gaining approximately 6 million new users each month.

    In addition, the NPCI has established a lofty objective of reaching one billion transactions per day within the next several years.

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  • SEBI Issues Administrative Warning to Paytm Over Compliance Failures

    As a result of unapproved related party transactions of INR 324 crore and INR 36 crore with Paytm Payments Bank (PPBL) in FY 2021-22, One 97 Communications (OCL), the parent company of Paytm, was warned by SEBI. Noncompliance was highlighted in the letter dated July 15, 2024. When responding to SEBI’s concerns, Paytm emphasised that it follows SEBI Listing Regulations, maintains high standards, is transparent, and confirms that there would be no financial impact.

    In the letter, it was said that the company would also provide a response to SEBI and that it would adhere to the highest compliance standards.

    There were certain non-compliances found during the examination, according to SEBI. The company and its subsidiaries engaged in excessive related party transactions (RPTs) with PPBL in FY 2021-22 without obtaining the necessary clearance from the audit committee or the shareholders.

    Transactions between OCL subsidiaries and PPBL did not qualify as RPTs during FY 2021-22, and the company claimed that it had provided a cumulative numerical value of the transactions with PPBL for shareholders to reference.

    Nevertheless, these transactions were deemed material RPTs by the company’s Board and Audit Committee, which resolved that RPTs involving PPBL would remain within the specified limitations.

    Paytm Going Through Trouble Waters

    Just days ago, news broke that Japanese internet investor SoftBank lost $150 million in the first quarter of the current fiscal year when it allegedly pulled out of ailing financial firm Paytm.

    Since February, when the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank, the stock price of Paytm has been under pressure. As a result, Paytm’s net loss in Q4 FY24 increased to INR 550.5 crore, from INR 167.5 crore in the corresponding period of the previous year, which was a threefold rise. The company also had a 2.9% year-on-year decline in revenue to INR 2,267.10 crore during the quarter.

    Paytm affirmed its dedication to the highest compliance standards in a filing with the stock exchange and promised to respond in detail to SEBI’s concerns about the issue.

    Paytm has reassured its stakeholders that the monetary, operational, or any other aspect of its business will be unaffected by this administrative warning. In response to SEBI’s concerns, the company is enhancing compliance standards and taking other measures to ensure this doesn’t happen again.

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    From Highs to Lows: Paytm’s Compliance Problems and RBI Scrutiny

    In India, the digital revolution began with Paytm. It eventually became the most popular payment app in India. Paytm has enabled digital payment acceptance for over 20 million merchants and companies worldwide.

    However, with the implementation of strict regulations issued by the Reserve Bank of India (RBI), Paytm Payments Bank (PPBL), the brainchild and much-loved unicorn success story of India, has recently put founder and CEO Vijay Shekhar Sharma through a serious crisis.

    Due to compliance problems, related party transactions, and violations of KYC (Know Your Customer) standards, the RBI slapped Paytm with a heavy fine. Worries about illicit financial dealings involving large sums of money (in the crores of rupees) prompted the intervention. Red flags were raised due to accounts that did not comply with KYC regulations and cases where the same PAN was used for many accounts.

    After hundreds of thousands of accounts were discovered to have been created without sufficient identity, PPBL came under examination from the RBI, according to various media reports. Because of the suspicious activity in the PPBL accounts, the Reserve Bank of India (RBI) notified the Enforcement Directorate (ED) and other relevant government bodies.

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