Context:
Paytm Money has received its Research Analyst registration certificate from SEBI, as per exchange filings.
Significance
- This certification allows Paytm Money to
- Provide research reports
- Offer investment analyses to both retail and institutional investors
Company’s Stand
- Paytm Money stated that this milestone:
- Aligns with its objective to expand offerings in the investment ecosystem
- Aims to enhance user experience
- Will deliver expert-backed insights for investors
Why Was the Paytm Payments Bank Banned ?
Since the commemoration of PPBL, many notices have been issued to the company from RBI. The company faced many issues like failing with the KYC guidelines and suspending the new accounts. Here are the major reasons:
- Money-laundering concerns: The total value of transactions happening goes much beyond the regulatory limits.
- Dormant accounts: Out of 35 crore e-wallets, 31 crore were dormant accounts and only 4 crore remaining had some to no activity. This high number of dormant accounts can mean an increase in the mule accounts.
- Irregularities in KYC: There were major faults in KYC which would put the users at huge risk.
- Anti-money laundering violations: In 2021, RBI detected violations of anti-money laundering violations and the bank was warned about it but continued to persist.
- Incomplete compliance: The compliance submitted by the bank was faulty and incomplete in many instances.
- Audit: RBI instructed PPBL to onboard new clients in 2022 and appoint an external firm to do a comprehensive audit of the system. Many accounts were ceased by various digital agencies across the countries as they were used in committing digital frauds.
What’s Next
- The new research and advisory services will soon be:
- Integrated into the Paytm Money app
