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The Reserve Bank of India has approved the migration of Paytm's UPI-based payments business from Paytm Payments Bank to other banks, including Axis Bank, to ensure compliance and business continuity. The move brings Paytm on par with other fintechs offering payment services through UPI.
NPCI chief Dilip Asbe emphasized the importance of compliance for long-term success in the fintech space. He discussed recent regulatory actions against Paytm Payments Bank and highlighted growth opportunities in digital payments. Asbe mentioned NPCI's interest in international expansion and the potential of AI in the payment industry.
Three fundamental sources of infirmity need fixing. First, the KYC process using Aadhaar must be made credible and secure. Second, since most UPI transactions are free, traditional lenders have little incentive to shorten their technology-upgrade cycle. Third, the monopoly of the National Payments Corporation of India, which runs the UPI, must end. As long as the country’s preferred system for moving money online is devoid of fair charges — and free from competition, there are great risks
Uday Kotak, a seasoned banker, expressed on Wednesday that regulators should not be overly cautious or conservative, but rather respond swiftly to “accidents” in the financial sector. Regarding the issue with Paytm Payments Bank Ltd (PPBL), Kotak refrained from commenting on the individual company, stating that “RBI knows more than You and I.”
Earlier, Paytm shares hit 5 per cent upper circuit during three consecutive trading sessions. The shares closed at Rs 376 a piece on Wednesday (February 21).