RBI Orders Paytm Payments Bank to Halt Operations Amid Regulatory Concerns

The Reserve Bank of India's directive comes after finding numerous compliance issues, including potential money laundering activities.

• The RBI has ordered Paytm Payments Bank to stop services from February 29 due to alleged violations of norms, including inadequate KYC and potential money laundering.
• Over 1,000 Paytm accounts were linked to the same PAN, raising concerns about the security and continuity of financial services.
• CAIT advises traders to switch from Paytm to other payment apps in light of the RBI's restrictions.
• Paytm's stock plummeted 36% over two days, erasing $2 billion from its market value.
• Paytm's digital wallet business faces uncertainty as it may not operate post-February 29 without RBI's approval for license transfer.

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