The post paid wallet is violating RBI’s guidelines, claims plea
The Delhi High Court on Monday sought RBI’s response on a petition claiming that Paytm Post Paid wallet was being operated in contravention of RBI’s guidelines.
A Bench headed by Chief Justice Rajendra Menon also sought response from Paytm Payments Bank on the plea filed by financial economist Abhijit Mishra, posting the case for hearing on September 3.
The petition, filed through advocate Payal Bahl, stated that PayTm Payments Bank Limited was granted payments bank license by the banking sector regulator in January 2017. It claimed that the guidelines for licensing of payments bank does not have credit or loan disbursement activities or products as authorised activities for the payments bank. “The Paytm Payments Bank Limited has been lending to the customers through its PayTM Post Paid wallet, thereby violating the guidelines,” the petition said.
The petition also claimed that the RBI, in its response to an RTI query, has stated that the PayTM Payments Bank Limited has not informed or notified the regulator about its operations of the post-paid wallet.
Mr. Mishra has sought direction of the court to initiate enquiry and investigation by the competent investigating authorities against the directors, management and officers of the PayTM Payments Bank Limited for malpractice.
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