Paytm Payments Bank Incident Sparks Focus on Following Strict KYC Rules in Fintech

The recent actions taken by the Reserve Bank of India (RBI) on Paytm Payments Bank PPBL have made everyone in the fintech world pay more attention to following rules. Union Minister Rajeev Chandrasekhar says it’s really important for companies to follow the rules set by regulators. He thinks that even though some entrepreneurs are very determined to succeed, they sometimes forget about the rules.

Chandrasekhar believes that instead of scaring people, the RBI’s actions should remind everyone to follow the rules properly. Rishi Agrawal, who helps companies with regulations, talks about how international rules like GDPR and AML affect fintech companies in India. He says it’s important for Indian rules to match international ones for smooth business across countries.

Meanwhile, while looking into PPBL’s transactions, the Enforcement Directorate found no problems with foreign exchange laws. But the RBI can still act for other issues. Paytm is making changes, like moving its main account to Axis Bank, to keep its services running smoothly even after the RBI’s deadlines.