The RBI has imposed major restrictions on the operations of Paytm Payments Bank Ltd (PPBL). It has directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.

An RBI circular stated that this action follows an audit report and a compliance validation report by external auditors, which revealed “persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action”.

The Paytm founders have written to the RBI governor and the finance minister asking them to reconsider the regulatory action against them.

What exactly are the allegations against Paytm? What does the RBI action mean – for Paytm, for the fintech sector, and for ordinary users? What are the issues with the regulatory framework for the digital payments ecosystem?

Guest: Srikanth Lakshmanan of Cashless Consumer, a consumer collective that works on fintech.

Host: G. Sampath, Social Affairs Editor, The Hindu.

Edited by Sharmada Venkatasubramanian.