Overview

• The RBI's recent actions against Paytm and other financial institutions highlight a growing impatience with lapses in customer verification and potential fraud.
• Fines for failing to properly vet customers are becoming more frequent, as the central bank aims to strengthen risk management in the financial sector.
• The crackdown includes a directive to Visa to halt a payments service for transactions with unauthorized merchants, underscoring the RBI's broader regulatory efforts.
• Paytm's banking affiliate was barred from accepting new credits and mobile wallet transactions, affecting its operations and stock value.
• Authorities emphasize the importance of depositor and customer interests, indicating that financial stability remains a prime concern amid rising fraud cases.