PAYTM PAYMENTS BANK LTD FIASCO – LESSONS TO BE LEARNT BY INDIAN FINTECH COMPANIES

Abstract

This paper delves into the recent regulatory action against Paytm Payments Bank Ltd (PPBL) by the Reserve Bank of India (RBI), highlighting violations related to KYC norms, money laundering, and related party transactions. It examines the implications of this incident for Indian fintech companies, emphasizing the importance of regulatory compliance and risk management in the digital financial sector. Despite its pioneering role in digital payments and financial services, Paytm's regulatory challenges underscore the need for robust governance frameworks and adherence to industry standards.