Paytm V/S RBI | Business Case Study | Rahul Malodia

'Paytm Bank is Gone' RBI has given such an order, It is not difficult for Paytm to protect itself from it, Perhaps even impossible CAIT i.e., Confederation of All India Traders They have said to all shopkeepers and merchants bankers, That, Remove those Paytm sound boxes and QR codes We don't know what will happen next? The fate of Paytm Bank has been bad from the beginning Since obtaining the license, It has been banned twice Penalty has been imposed twice And such acts or scandals have been com

mitted If you listen then you will not believe whether it is a bank running it, Or Lala Ji shop is running Some people are saying that this is just the beginning, Just now, only Paytm has gone; Gradually, the Paytm wallet will also disappear Some people are saying it's good; It should have happened to such people Some people are saying it is not good, One should not take strict action like this At least, they should be given some chance An image against the startup gets created, What is the gove

rnment doing against Fintech (companies)? Hence, there are two types of sides, who is right and who is wrong? We will find out in the video today So, In this video, we will see What mistakes did Paytm make? When and Why was Paytm banned? How much penalty was imposed? And why does it continue to operate even after being banned? Why does this fraud happen in any sector, i.e., in the financial sector or in the banking sector? And the people who are sitting while investing in Paytm, And they are ask

ing whether to leave the money in it, Take an exit or invest? What to do? What are the suggestions for these people? I will tell you those in the video And apart from that, If you are a Paytm wallet user, Or you have the Paytm sound box, The QR code is there, What will happen with that FASTag balance? Your Rahul will tell you all these things So, by saying 'Janta Janardhan ki Jai Ho', Let's start the video! It is a saying that, You keep doing big or small, right or wrong things, do anything The

government does not pay attention at once However, when the government pays attention, It takes out all the news of the last many years And something like this happened on 31st January, RBI issued an order that, No transactions will be possible in Paytm Payment Bank after 29 February You will not be able to add more money to this Paytm Payment Bank You may withdraw old money, However, after 29 February, Any other payments and these things will not be able to run FASTag and these things will not

work This action is taken on Paytm Payment Bank Not on Paytm Wallet, They both are different things I will explain further in this video Paytm is a mobile payment platform where you download the app, And link your personal account to its wallet, And with its help, you can add money to it, And, make payments accordingly So, this mobile system was already running, they applied And said that brother, I need the license of payments bank They got the license in 2015 They started the operations in 201

7 One year has passed since they started However, RBI banned it in 2018 Brother, you will not onboard new users Said, brother, what is the matter? So soon? They said you have a problem, What's the problem? Said, you are violating the license conditions, You are not maintaining the day-end balance, You are not maintaining that There is a problem with that as well There are many irregularities in the KYC norms That's why we have banned you But, now, it is the thing, That was the beginning, PayTM t

alked with RBI, Like, sir, We are a new company It sometimes happens. We are currently practising, We will improve this, Will Improve that Do not take tension, We will make this and that right and so forth With all these talks, They were able to successfully lift the ban in December 2018 During this period, a big thing happened, And, it is the root cause of all the things What people have said and what hasn't been said, How many videos have you seen on this topic, Let's set them aside With this

incident, You will get to know that the incident happened due to this reason One mistake has impacted Paytm so far Now, if the Paytm bank is present, So, accounts will also have to be opened, And to open the accounts, Their executives are going To whom will they go first? Tell me They will go to the one who already has already downloaded Paytm Because he is a customer of the Wallet Let's make him a customer of the bank as well However, the individual who has the wallet, He already has a bank acc

ount due to which he is able to use the wallet Now, you already have an account in any bank like SBI or ICICI Now, if I come and try to convince you that Sir, Kindly open a new account The customer says, in which bank? Say, sir, In Paytm Payments Bank What is a Payments Bank? Sir, it is something different from a normal bank Say, what is in this? Now, who has the time to explain all this, firstly? And, if explain, The person doesn't understand and says, There is one account already and our work

is going on, Why to open a new account? So, they did a trick, It is a saying that like neither straight, nor black, nor dark, There is a grey area in between They went there and said, At that time, the RBI had created an issue Like, all the wallets that are there, are not opened correctly Get their KYC done And, so, Paytm said to (customers) like RBI is saying to undergo KYC Hence, the wallets that do not undergo KYC will be closed So, there were many individuals who were in Paytm and, And, for

them, wallet was an important option, So, they said, let's get the KYC done What did they (Paytm) do? That KYC Form (Our editors will show you on the screen) They just wrote in the form itself, When you have to get KYC done, You have to get KYC done for your wallet You went to some shop where his agent is sitting The agent came to your house to do KYC He asks you to sign this form, give Aadhaar, OTP will come, what is written in that account that, Yes, I am getting the KYC verified, And, I also

want to open an account with Paytm Payment Bank What has happened? now, Brother, you are feeling that I am getting the KYC verified, But, by the time your KYC is verified, Your account has also been opened Without your wish, Without you even knowing you Later, maybe you will get a message saying thank you, The account has been opened in your payment account You said, when did I open it, He will tell you then like see this, I told you before So, basically opened the account without their consent

There was no problem, no problem, There was no fraud in that too, the account was only opened, Well, many such incidents have been heard Like, a very intelligent man is gone Like our editor, as he said, brother, Your KYC will be verified, OTP will come, You have given OTP as well Now, he is asking for a second OTP of the bank account, You said, Why should I give a second OTP? Only one OTP has been given; the work is done now Then, he explains, And, no one generally reads the form, However, if s

omeone has read the form, Like, Hey, are you opening my account? No, don't open my account Only KYC has to be done In that case, the agent says, You don't open the account? So, I will not verify the KYC as well So, many such stories were also heard However, many people have not given a thought to this Most of the accounts were opened, Now, what was the one more thing in this? The accounts were being opened But this speed was also not understood was Paytm Paytm has said, 'We want to increase the

speed more, We want more and more accounts Startups always stay in a hurry Because it has taken a fund from someone else And, so, give results every 3 months, or will not get funds further So, brother, they always stay in a hurry So, now what happened? They said to the agent that, Up to now, it was a part of the job Now, we will give Rs 50 for each account opening Now, in India, if you give such incentives, Like, you will get Rs 50 for the account opening Now, an individual thinks that if he ope

ns 20 accounts in a day, He could make Rs 1000 a day, Rs 30000 in a month This is a great fun brother Now brother, when this account opening started, Now, previously, it was their work, Like, so, they were checking KYC, The Aadhar should be right; This photo is not matching, The name is not matching, Now, they were started getting Rs 50 So, everything is matching, Now, like, give the Pan Number Pan Number is not there? No worry, I will attach my Pan number to it On 1 Pan number, 100 Accounts wer

e opened On 1 Pan number, 1000 Accounts were opened At first thing, the matter got spoiled at one level, The second level came again as well This Rs 50 man was very intelligent, He said, I am alone earning 50 only, And earning 30000 a month, He gave an ad, he said, Look, we need to appoint new members He appoints 4 guys, and says, listen Open accounts every day. I will get Rs 50 rupees, Rs 30 will be yours and Rs 20 will be mine Now, the person is sitting at home Like, 10 people are roaming arou

nd for Rs 30 He is getting Rs 20 while sitting at home Now, brother, for that 50 rupees, he did what he did For Rs 30, they did not know what they did Now, brother, these were the mistakes that were done These are all the mistakes they made, The top management did not know anything, It is also possible The top management got it done deliberately, It is also possible There is no proof as to what, But, the thing is that whenever there is a mistake, The neck of the top management will be caught You

cannot say that the one with Rs 30 did it, The one with Rsll 50 did it, brother, what were you doing? This is the first business-learning and life-learning Whenever you give an incentive to any person, You should give it very thoughtfully Because due to the greed of incentive, Sometimes a person acts straight, Sometimes acts crooked as well And, sometimes, unusual as well And when you are in front of a large number of people You send products to thousands and lakhs of people And giving the lure

of incentives, So, which person will find what way to earn that incentive? This can be risky for you, brother, And later, the matter will come after you Meanwhile, on October 21, RBI has imposed a penalty of Rs 1 crore on them, For which thing? They gave the wrong information to the RBI Tell me? The common man is afraid of giving the wrong Aadhaar number He is afraid of giving the wrong PAN number They are giving the wrong information to RBI itself RBI said, Do you dare mess with us? Let's impo

se a penalty of Rs 1 crore Well, this is the story I told you that such accounts were being opened Around March 2022, This thing was also reached to the RBI And RBI noticed that these agents are not even taking the customer's consent, These agents are opening accounts on their own accord So, the RBI again banned them, From creating new customers, And once when they investigated a little more, Then, some things came to light, Due to this even RBI once got worried, It was found that, There is a la

pse in technology itself, Okay If you are opening an account in the wrong way, Then, the technology is not such that If you open the wrong account, Give wrong details or someone starts opening it for the second time, Then, the technology can stop you, The technology is not making it stop There is a lapse in the technology itself And the issue of cyber security has also come to light Brother, this is an issue of cyber security The data is managed in such a way That an attack can happen at any tim

e Their information can be tampered with There are some laws of anti-money laundering, They were not followed Now, the data of the bank is very sensitive Because it is the common man's money It is the public's money, So, brother, it should be separate like the server, Separate security, Here, it is identified that, The main Paytm Company i.e. One97 Communication Their and the bank's data are lying in one place, The same servers are being used by each other It means, technically these two servers

are being shared with the same server So brother, where is the privacy? where is the security? And if we give one more angle to this, So, there is a big Chinese investment present in Paytm as well So, 6 to 7 servers are being shared in a Chinese company, And in that, there is much data of the Indian population present as well This is a very risky thing And if we understand in a simple way, Assume, I do not use Paytm Wallet I use GooglePay However, I have opened an account on payment banks Now,

if I am an account holder of a payment bank, how will I access it? I will have to download it, The wallet will be visible there and when I open the app, I do not understand which service is of the bank and which is of the wallet, I am not able to understand that