RBI RESTRICTION ON PAYTM

-
RBI RESTRICTION ON PAYTM
The Reserve Bank of India (RBI) has ordered Paytm Payments Bank to stop most business operations, 
including accepting fresh deposits, from March 1st 2023. Existing users can access their wallet balances 
for payments only until February 29th. 
What is the Issue?
 Paytm is an app many of us use for mobile payments and transactions. We can store money in our 
Paytm wallet, much like we do in a physical wallet.
 The company that owns Paytm also partly owns something called Paytm Payments Bank. Think of 
this as a special small-scale digital bank, which can accept deposits but cannot give out loans like 
a full-fl edged bank.
 Now the banking regulator Reserve Bank of India (RBI) has banned Paytm Payments Bank from 
adding any new customers starting next month.
 Why did the RBI do this? -The RBI fl agged Paytm Payments Bank for having unverifi ed accounts 
and multiple accounts under single IDs, indicating a lack of anti-money laundering safeguards.
 What does this mean? -Existing Paytm users can continue to use wallet and payment services. But 
the ban hurts the bank’s revenues from new customer sign ups.
 Key Concepts : students are advised to go through these concepts.
 Digital Wallets vs Digital Banks
 Role of banking regulator RBI
 Know Your Customer, Anti Money Laundering rules
 Diff erence between lending banks and payments banks

Comments

Post a Comment

Popular posts from this blog

Environmental

-
 ENVIRONMENT GREENING AND RESTORATION OF WASTELAND WITH AGROFORESTRY (GROW) REPORT  GROW initiative by NITI Aayog-to assess agroforestry suitability across all districts in India.  Around 17% of India’s total geographical area is wasteland.  This initiative is Needed for the aim to restore 26 million hectares of degraded land by 2030 and  create an additional carbon sink.  3 main types of agroforestry systems :   Agrisilvicultural systems : Crops+ Trees  Silvopastoral systems- trees+ animals  Agrosilvopastoral systems= Crops+Trees+animals ALASKA POX Why in News “An elderly man from Alaska recently became the fi rst person to die after contracting Alaska Pox.”  It is a double-stranded DNA virus belonging to the same genus (Orthopoxvirus) as smallpox, monkeypox, and cowpox.  First discovered in Alaska in 2015.  Orthopoxviruses are zoonotic viruses that can infect various mammals, including humans.  While human-to-human transmission of Alaska Pox has not yet been...
Read more

wildlife_sanctuary

-
 #wildlife_sanctuary ❇️ Sohagibarwa Wildlife Sanctuary ➖ Located in the Maharajganj district in Uttar Pradesh state. ➖ Situated on the west Bank of the Gandaki River, near the border with Nepal. ➖ One of the tiger habitats of in Uttar Pradesh.
Read more

UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE (UNFCCC)

-
UNITED NATIONS FRAMEWORK CONVENTION ON  CLIMATE CHANGE (UNFCCC)- KEY POINTS • The United Nations Conference on Environment and  Development is also known by other names like the Earth  Summit, the Rio Summit, or the Rio Conference. • Two other outcomes of the Rio Conference were  Convention on Biological Diversity and  The United Nations Convention to Combat Desertification. • About UNFCCC:  It is a multilateral treaty governing actions to combat  climate change through adaptation and mitigation  efforts directed at control of emission of GreenHouse  Gases (GHGs) that cause global warming.  It is considered the parent treaty of both the Kyoto  Protocol (1997) and the Paris Agreement (2015).  UNFCCC entered into force on 1994 and has been  ratified by 197 countries.  India ratified the UNFCCC in 1993.  Nodal Agency in India: The Ministry of Environment,  Forests and Climate Change (MoEFCC) acts as the  nodal agency fo...
Read more