The Delhi High Court on Monday sought RBI`s response to a PIL alleging that online payment platform Paytm provides credit facilities in violation of the law governing such activities. A bank owned by Chief Justice Rajendra Menon and Judge Brijesh Sethi sent a notice to RBI and Paytm Payments Bank Ltd requesting their opinion on the lawsuit, alleging that the company`s “postpaid” service violated existing laws and policies governing those companies. “It has been established that these companies conduct their suspected/illegal activities through various identifiers/merchant accounts on payment gateways/banks,” the executive director said. Before the pandemic, I was doing postpaid Paytm because of the pandemic, I couldn`t claim the amount at that time, the actual amount I took is *** rupees, now with penalties and the total amount increased to **** rupees. * Months ago I spoke to PayTM postpaid customer service and they came up with a bloody rupee settlement amount and I paid immediately and they said I would receive a settlement letter after a few days, so far I have not received a settlement letter as the debt collectors have started calling me in the last two months and asking for an unpaid amount. When I say the problems (they say how We will get back to you with update and disappear without answer), again call from another number now started sending messages on WhatsApp and ask for payment, if I share the chat history of billing amount issues, they do not respond and come back with another number ask for payment, It sounds like this message of almost *-* number and everywhere I say that the amount of unanswered billing disappears. Please provide a solution. Paytm said it was cooperating fully with the authorities and that all policy measures were being properly followed. The petition also claimed that any new product introduced by the payment bank requires prior approval from the RBI, but in this case, Paytm`s central bank was not informed of its “postpaid” service. The court ordered the government and the RBI to file affidavits before the next hearing date on September 3, setting out their response to the plea. “Paytm Payments Bank, through its unauthorized Paytm Post Pay, has granted unauthorized and unauthorized access to its customers` personal data such as Aadhaar, PAN, transactions, etc.
to unauthorized third parties, clearly violating Article 21 of the Constitution of India and other relevant banking laws,” the IPL said. “These companies are controlled/operated by Chinese.” Paytm Postpaid is a credit facility that the company offers to its customers. He also looked for ways to transfer all profits from Paytm postpaid operations to the Prime Minister`s Relief Fund for the benefit of the nation. “Paytm Payments Bank issued loans to its customers through its Paytm Post-Paid loans, which is a clear violation of guidelines prohibiting lending by the payment bank,” reads the complaint, filed by attorney Payal Bahl. Digital financial services company One97 Communications, which operates under the Paytm brand, on Sunday denied any links to merchants who are under the scrutiny of the Law Enforcement Directorate in the case of the Chinese credit app. “As part of ongoing investigations into a specific group of merchants, ED has collected information about merchants to whom we provide payment processing solutions. We would like to clarify that these merchants are independent entities and none of them are our group company,” Paytm said in a regulatory filing. “It should be noted that the ED has asked us to freeze certain amounts of the Merchant Identifiers (MIDs) of a certain group of trading companies (as mentioned by the ED in its press release). It can also be noted that none of the funds ordered to be frozen belong to Paytm or any of our group companies,” Paytm said. In addition to calling for punitive action against the company, the petition also directed RBI to appoint or represent one of its officers on the company`s board of directors “to oversee the audit of operations and regulatory compliance.” .