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PIL filed against Paytm Payments Bank

May 28, 2019 by The Passage Team
PIL filed against Paytm Payments Bank

Noida-based payments company Paytm is getting embroiled into one problem after another. While it is already investigating an internal fraud to the tune of Rs 10 crore by its employees and listed sellers, the much celebrated company has to now defend itself against a PIL filed in Delhi high court on Monday.

Financial economist Abhijit Mishra has filed a PIL (Public Interest Litigation) against Paytm Payments Banks for allegedly operating illegally. The PIL said Paytm Payments Banks is illegally offering credit to users, which is against the law that regulates such a facility.

The Delhi high court headed by Chief Justice Rajendra Menon and Justice Brijesh Sethi has sent a notice to the Reserve Bank of India (RBI) and Paytm Payments Banks seeking their response on the matter. The next date of hearing is on September 3.

Paytm launched its postpaid service a few months ago, offerring loans to select users. It can be used to pay bills, recharge mobile phones, shop on Paytm, and buy travel and movie tickets.

“Through the means of this Public Interest Litigation, the petitioner wants to highlight the issues in the Paytm Payments Bank Limited’s unauthorised / illegal operation of Paytm Post Paid Wallets in defiance of Operating Guidelines for Payments and Guidelines for Licensing of Payments Banks as issued vide notification by the Banking Regulator viz- Reserve Bank of India. The petitioner is very much concerned for the welfare of Indian Financial system. The Paytm Payments Bank by the means its unauthorized Paytm Post Paid has provided unmonitored and unauthorized access to the personal information such as AADHAR, PAN, Transaction etc. of the bank’s customer to the unauthorized third party, thereby clearly violating the Article 21 of the Indian Constitution and other relevant banking acts such as Payments and Settlements Act." the petition reads.

The Passage Team

The Passage is committed to creating in-depth content over technology industry across Asia with a focus on emerging startups in the technology, healthcare, education, food, tech, travel & mobility segments.

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