RBI action against India’s leading FinTech Firm Paytm
India’s leading FinTech firm Paytm is again in limelight after RBI action against it due breach of regulatory norms. In a latest regulatory action, the RBI has directed Paytm Payments Bank to stop onboarding of new customers. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.
Paytm is in highlight since its mega IPO launched last year and continuous underperformance of company’s stock price in the market. The frequent regulatory breaches will spoil its chances to get the Small Finance Banking (SFB) licence which it has been seriously considering and may move an application for conversion into an SFB. The current RBI guidelines allow payments bank to convert into an SFB after the completion of the first 5 years.
