A press release issued by the Reserve Bank of India (RBI) two weeks ago directed the Paytm Payments Bank Ltd (PPBL) to stop onboarding customers with immediate effect. Existing customers were allowed to withdraw or utilise the balance in all their accounts but were not permitted to make additional deposit or credit transactions. No other banking services can be carried out by PPBL after February 29. Essentially, the RBI has stopped the operations of the PPBL. Why was this done? An established and respected regulator like the RBI does not act without reason and justification.
We presume that PPBL has engaged in egregious violations that necessitated a drastic response. It is likely that many smaller violations have occurred in the past. We would also presume that the top-management of PPBL was informed about the violations and given a chance to correct past behaviour. But these are presumptions; the truth is we do not know.
We do not have a formal legal order from the RBI setting out the failures and the justification for the action. All we have is a press release that specifies punishments, without offering evidence or rationale.
The press release simply says that "the Comprehensive System Audit report and subsequent Compliance Validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action".
This statement leaves many questions unanswered. We do not know whether a hearing took place, we have not heard PPBL's side of the story, and we do 11 ILLUSTRATION: BINAY SINHA not know the RBI's rebuttal of PPBL's defence. It is thus unclear whether due process and rule of law principles were followed by public authorities before imposing punitive actions.
هذه القصة مأخوذة من طبعة February 16, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة February 16, 2024 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Indians prefer credit over debit card for high-value payments
In June 2024, India saw a significant increase in the number of credit, debit, and prepaid cards, reaching a total of 1.451 billion cards—an 11 per cent jump from the previous year, according to the India Digital Payments report for the first half of 2024 (January to June) by payment technology service provider Worldline.
An Indian anthropologist ahead of her time
Urmilla Deshpande set out to work on a novel about an Indian woman in Germany in the 1920s based on her grandmother Irawati Karve when she stumbled on the opportunity to write her biography.
IAF plane makes inaugural landing at upcoming Navi Mumbai airport
An Airbus C-295 of the Indian Air Force (IAF) touched down at Navi Mumbai International Airport (NMIAL) on Friday, marking the formal inaugural flight landing at the place. A Sukhoi SU-30 fighter jet did a low fly-by at the airport to test the 3.7-km long runway in the presence of Maharashtra Chief Minister Eknath Shinde, his deputy Devendra Fadnavis and Murlidhar Mohol, Minister of State for Civil Aviation and Co-operation.
Less than 33% of youth can search Net, transact online
Less than a third of those in the 15-29 age group can \"search the internet; send or receive an email and perform an online transaction\", show the findings from the latest Comprehensive Annual Modular Survey (CAMS), released by National Statistical Office (NSO) this week.
TCS shares dip as analysts offer mixed outlook
IT sector is expected to grow considerably from Q4 FY25 onwards
NSE retains Nifty 50 for weekly contracts
The National Stock Exchange (NSE) has opted for the Nifty 50 index for issuing weekly option contracts following the Securities Exchange Board of India (Sebi's) one-exchange-one-benchmark mandate.
Compare lenders' costs; higher rates can offset benefits of offers
Footfall, enquiries, and bookings at car dealerships are rising, driven by attractive offers and promotions. These special deals typically start in October and run until the New Year.
Noel's appointment as Tata Trusts' chair signals continuity: Analysts
It will be business as usual for Tata group stocks post Noel Naval Tata's appointment as chair of Tata Trusts, said analysts. They added that the development will signal continuity.
Sebi intervenes in ₹45cr Trafiksol IPO irregularity
To undertake detailed examination into disclosures by the firm
India-focused funds log first weekly redemption in 19 mths
China resurgence, expensive valuation dim India appeal; midcap funds see 14th week of outflows