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RBI FAQ To Address Public Concerns, Paytm Payments Bank Action For Persistent Non-compliance

RBI FAQs Paytm

RBI FAQ To Address Public Concerns, Paytm Payments Bank Action For Persistent Non-compliance

Paytm News Today: Action against Paytm Payments Bank is taken due to “persistent non-compliance” and adequate time was given for corrective actions, Reserve Bank of India Deputy Governor Swaminathan said on Thursday. He added that the action has been taken against the Paytm Payments Bank and not the Paytm app as a platform.

The central bank will take suitable steps as warranted going ahead, Swaminathan said at a post-MPC announcement press briefing held in Mumbai along with RBI Governor Shaktikanta Das.

Das added, “There is no worry about the system, we are only talking about a specific payment bank.”

If everything had been complied with, why should RBI act against a regulated entity, asked Das, without naming Paytm.

Also, RBI will be issuing a set of FAQs (frequently asked questions) next week to assuage public concerns following the Paytm action, Das added.

Amid concerns over non-compliance, RBI has taken various measures against PPBL wherein it will not be allowed to offer any services concerning deposits, prepaid instruments and e-wallets after February 29.

The entity has also been directed to stop onboarding new customers.

‘RBI To Deal With Paytm Issue’

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RBI FAQs Paytm

Financial Services Secretary Vivek Joshi on Wednesday said it is for the Reserve Bank to deal with the Paytm issue and the government has nothing to do with the matter for now.

He also said that Paytm Payments Bank Ltd (PPBL) is a small financial entity and there are no systemic stability concerns.

“It is action taken by the regulator. They regulate the banks. The government has had nothing to do until now when it comes to the actions taken against Paytm. And we believe that RBI must have taken the action in the overall interest of the consumer and the economy,” Joshi told PTI in an interview.

With regard to Foreign Direct Investment (FDI) in Paytm’s payment aggregator subsidiary, he said permission has been sought for investment from China.

“The application is under review as it is an inter-ministerial process. It is under consideration,” he said.

On whether there are any financial stability concerns due to the action taken by the RBI against PPBL, Joshi said it is a very small bank and there were no systemic stability concerns as such.

“The customers who have an account in the payments bank, they will have to shift their account…. From what I understand, it is not the bank that will migrate the accounts. The customers have to do it,” he added.

Against the backdrop of RBI actions, on Tuesday, Paytm Founder Vijay Shekhar Sharma met Finance Minister Nirmala Sitharaman.

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Sources said that it was made clear to him that Paytm has to deal with RBI.

Core Issues

There are allegations that PPBL had lakhs of non-KYC (Know Your Customer) compliant accounts and in thousands of cases, a single PAN (Permanent Account Number) was used for opening multiple accounts.

There were also instances where the total value of transactions was worth crores of rupees, much beyond regulatory limits in minimum KYC pre-paid instruments, raising money laundering concerns, the sources told PTI.

According to an analyst, PPBL has about 35 crore e-wallets. Out of them, around 31 crore are dormant while only about 4 crore would be operative with either no balance or a small balance.

An unusually high number of dormant accounts are suspected to have been used as mule accounts. So, there were major irregularities in KYC compliance, which exposed the customers, depositors and wallet holders to serious risks, as per the analyst.

Also Read: RBI Monetary Policy: Key Information To Know, Shaktikanta Das To Announce Decisions Today

Final Thought 

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The Reserve Bank of India’s resolution to pursue legal action against Paytm Payments Bank (PPBL) due to “persistent non-compliance” highlights the central bank’s dedication to guaranteeing adherence to regulations and protecting the interests of consumers. The distinction observed between the restrictions implemented against PPBL and the wider Paytm app platform underscores the specific focus of the regulatory actions undertaken by the RBI. Stakeholders are awaiting comprehensive guidance as FAQs intended to address public concerns and further clarify the situation are scheduled for release. The RBI’s position, which is corroborated by remarks made by financial authorities, emphasizes how crucial it is to follow regulations, while also assuring that there are no worries about systemic stability resulting from this particular situation.

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Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

Air India

Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

A new statement from Air India Express stated that it was working to alleviate the problem, but the airline was still reeling from 24 hours of flight cancellations. On Wednesday, the airline terminated the contracts of some senior cabin crew members who had “reported sick” the day before. The number of workers who received notice of termination from the airlines is not yet known; however, news outlet PTI stated that at least 25 senior crew members were let go from the company. Nevertheless, several media outlets have reported that there might be up to 30 staff let go. The airline said in a letter of termination that it had received from one of its workers that a significant portion of its personnel had called in ill at the last minute. The letter stated, “This clearly points to a pre-meditated and concerted abstention from work without any justification.”

Air India Express also said, per the report, that the crew members’ actions led to the cancellation of several flights, which had an impact on the airline’s schedule and inconvenienced passengers. As a result, it immediately ended the involved employees’ contracts. “Your act is not only subversive of public interest but has also caused embarrassment, severe reputational damage, and serious monetary loss to the company,” the corporation stated in the letter terminating the employees.

AIR INDIA EXPRESS TO OPERATE 292 FLIGHTS TODAY

A representative for Air India Express said that despite the continuous interruptions to the airline’s flight operations, 292 flights would be operated on Thursday with assistance from Air India; 74 flights have been canceled. “Air India Express is doing everything within our power to minimize the disruption this unforeseen circumstance has caused to our guests.” Today, there will be 292 flights that we run. The representative stated, “We have mobilized all available resources, and Air India will help us by running on 20 of our routes.

Also Read: Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

OVER 100 EMPLOYEES REPORTED SICK LAST MINUTE

Air India Express CEO Aloke Singh revealed in a statement on Wednesday that the airline will be cutting back on flights over the next few days as a result of a considerable number of cabin crew members reporting unwell right before their planned shifts. The airline has already canceled over 90 flights.

“More than 100 of our coworkers in the cabin crew have abruptly reported sick before their scheduled flight duties, seriously interfering with our business operations. In a 350-word statement, the CEO stated that “the impact was disproportionate, disrupting over 90 flights even though other colleagues reported for duty because this action was mostly by colleagues assigned L1 roles.”

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Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express

Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express crisis: According to Air India Express, a portion of its cabin crew reported being unwell, forcing the airline to cancel certain flights. “A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations,” an Air India Express official stated, as cited by the news agency. Our staff is aggressively resolving this problem to minimize any difficulty this may give to our visitors, even as we are interacting with the crew to learn the causes of these incidents.

Air India Express apologizes to travelers

The representative went on, “We want to emphasize that this does not represent the kind of service we aim to give and that we sincerely apologize to our visitors for this unplanned disturbance. Refunds in full or free rescheduling to another date are provided to guests who are affected by cancellations. It is required of our guests that, before leaving for the airport, they check to see whether their flight is disrupted. This comes after a union that represents a portion of the cabin crew at Air India Express said last month that the airline is being mishandled and that employees are not treated equally. The mishandling of the events, according to the Air India Express Employees Union (AIXEU), has also impacted staff morale.

Also Read: Passengers complain about Air India Express cancellations.

On social media, a few travelers expressed their displeasure at the unexpected flight cancellations. Air India Express responded to a passenger’s post on X (previously Twitter) on a canceled flight by stating that it was canceled “due to operational reasons.”. “As part of our service recovery process, you can either opt to reschedule the flight within the next 7 days or request a full refund through our chatbot, Tia…” the airline stated.

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Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank

Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank workers’ demands for a 5-day workweek are expected to be met shortly because the Indian Banks’ Association (IBA) and employee unions have already inked an agreement on the subject. The bank personnel anticipate receiving government clearance later in 2024; as of right now, only that is pending. The United Forum of Bank Unions and other bank employee unions have long advocated for a five-day workweek that excludes Saturdays. They guarantee that this won’t result in fewer hours spent providing customer service. A memorandum of understanding was subsequently signed in December 2023 between bank unions and the Indian Banks’ Association (IBA), which comprises both government-run and private institutions. A proposal for a 5-day workweek was included in this agreement, pending government approval.

The IBA and bank unions then signed the 9th Joint Note on March 8, 2024. The shift to a 5-day workweek with Saturdays and Sundays off was stated in the Joint Note, which was endorsed by the All India Bank Officers’ Confederation and the IBA. The government has the last say, even though the IBA and bank unions have reached an agreement. The Reserve Bank of India (RBI), which controls interbank transactions and banking hours, would also be consulted on the plan. The administration hasn’t set a formal timeframe for that. A few bank employees, however, said that they anticipate receiving the government’s warning by the end of this year or the beginning of 2025.

Also Read: Raymond reappoints Gautam Hari Singhania as MD for another five years

Saturdays will be recognized as official holidays under Section 25 of the Negotiable Instruments Act if they are authorized. It is stated that should the 5-day work week be adopted, the government will publish revised working hours that will extend the workday by forty minutes, from 9:45 a.m. to 5:30 p.m. Currently, the second and fourth Saturdays are closed for bank branches. Since 2015, bank unions have called for annual leave that includes all Saturdays and Sundays. In accordance with the terms of the 10th Bipartite Settlement, which was signed in 2015, the government, RBI, and IBA decided to make the second and fourth Saturdays holidays.

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