Was there any mistake by RBI in Paytm ban, how are the strings connected to Yes Bank?

Paytm Payments Bank: When the concept of Payments Bank was born in the country, RBI Governor Raghuram Rajan had given a statement, which is going viral these days. He had said that these are ‘innovative companies’ which do not like regulations much. It has been almost 8 years since Raghuram Rajan left the post of RBI Governor and RBI has banned Paytm. The way RBI has banned Paytm Payments Bank, is there any mistake on its part?

Before Paytm, the incident of sinking of Yes Bank on such a large scale had come to light in the country. In the case of Yes Bank, it had a full banking license and not just a payments bank license like Paytm. But when the sinking of Yes Bank happened, RBI was concerned about saving the banking sector along with the customers.

RBI and the government together saved Yes Bank from sinking. SBI was brought forward to save it, not only this, SBI was also asked to maintain investment in Yes Bank for 26 months. Experts believe that this matter was not taken into account in the case of Paytm Payments Bank.

Paytm Payments Bank banned and customers in limbo

According to a report, RBI has kept in mind the 'security' of customers while banning Paytm Payments Bank, but did not give any roadmap regarding the payments bank industry. In fact, it has been emphasized in the report that when for crores of people in the country, 'digital payment' means 'do Paytm', then banning such a big player will affect people's concerns regarding the system of digital payments in the country. Confidence will be less.

Of the digital transactions across the country, about 24 percent are through Paytm only. This includes transactions through UPI and wallet.

Not only this, in the article published in Bloomberg, it has also been pointed out that in the press release of RBI on Paytm ban, it has been told how Paytm Payments Bank has been banned. But absolutely no information has been given about what the crores of customers associated with it should do. Whereas in the case of Yes Bank, RBI had given detailed information regarding what the customers should do and what not to do.

RBI may bring clarification

Considering the large customer base of Paytm Payments Bank, RBI can now come out with a clarification regarding the ban. According to an ET news, Financial Services Secretary Vivek Joshi says that RBI has taken this step for the safety of customers. In such a situation, considering the millions of customers of Paytm, now RBI can issue a clarification in this regard.