I hope all of you might have herd about the crackdown on PayTm by RBI in India over the past week. For those who don't know PayTm is like India's PayPal, but much more advanced bringing in O2O paymnets, QR code etc. India also has many other FinTech players like PhonePe, GooglePay, AmazonPay and several others like MobiQik etc. PayTm had Chinese Ant funding and were under the scanner from 2018, even in 2022 they were asked to stop acceptance of new accounts and funds in their Bank. Now RBI has asked them to stop UPI the protocol to make and P2P money tranfers. While PayTm has said they will swith to another bank, but it seems like they are not getting love from other banks. There are concerns around KYC, risk and fraud over several years. Online scams are also very common in India, I am thinking is it just PayTm problem or a systemic issues across startups especially in FinTech sector. Already the stock has been battered by 40% now. It opened up at IPO in 2021 at Rs2000 and now is under Rs500. What is the future. Saw this article about a fraud 2 yrs ago that shows lot of problems at payTm prior to IPO. But looks like as always no Govt took any action. I am not sure how many more frauds would have happend for RBI to come in action? Here is a POV on current situation of PayTm https://www.youtube.com/watch?v=yBxWMBPUVOE&t=1s Here is the 2yr old article of fraud case of PayTm https://www.linkedin.com/posts/rakheesinghal_paytm-rbi-fraud-activity-7160427042721656833-hjRR?utm_source=share&utm_medium=member_desktop #India #startups #scam #Fintech #RBI #PayTm #tech
They were violating banking rules since 2018. They lied to the RBI. Fintech India is and will remain fine, PayTm banking is done for, PayTm wallet will most probably be acquired
They are also a public company so SEBI shoud also be involved. Lot of money will be wiped out, bad day for customers and shareholders
Paytm was finished after UPI was rolled out. Its main product was the wallet which had first mover advantage. UPI made it obsolete and it became just another tryhard super app. If you invested in Paytm, you deserve to lose money.
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If you dont want to follow rules inspite of repeated warnings, then you will get punished Paytm created a MLM scheme to open new merchant account without account holders even being aware ignoring kyc restrictions They were given very long rope
Totally agree here, only question is why they were doing what they could for so long? How many people would have been de frauded in the process? Is the Govt even accountable? Or is it they have had run inns with some political masters and paying a price?