CAIT Issues Advisory to Traders to Switch From Paytm to Other Apps After RBI Restrictions

CAIT on Paytm: After the Reserve Bank of India tighten its screw of a widely used app, the Confederation of All India Traders (CAIT) has issued an advisory to traders to switch from Paytm to another online digital payment mode.  In fresh response to the regulatory developments, the trade body has said that users should take proactive measures to protect their funds and ensure uninterrupted financial transactions.  #RepublicBusiness #Paytm  #BankSaga

While commenting on the fresh development, CAIT secretary Praveen Khandelwal told Republic Digital that a larger number of traders, hawkers and vendors are using Paytm for digital transaction processing which could lead to financial disruption to these people. 

Further adding on it, the trade body national president BC Bhartia said that the recent restrictions posed by the Reserve Bank of India on digital payment apps have raised concerns about the security and continuity of financial services provided by the platform.

He further added, “One of the major reasons for the ban on Paytm Payment Bank was the creation of millions of accounts without proper identification. The process of Know Your Customer (KYC) was not completed for these accounts. Moreover, transactions involving millions of rupees were conducted without proper identification, raising concerns about money laundering.” 

After this recent development, the CAIT secretary highlighted the importance of risk mitigation for traders and urged them to explore alternative payment apps that complied with the regulatory guidelines.

Khandelwal further noted, “Our advisory is a precautionary measure to protect the financial interests of traders in light of recent developments. We encourage users to stay informed and take proactive steps to ensure the security of their funds."